Stabilizing Nominal GDP
Scott argues that the financial crisis of 2008 was primarily a symptom of declining nominal GDP expectations rather than a failure of the financial system itself. He emphasizes the importance of stabilizing nominal GDP to mitigate sectoral shocks and suggests that monetary policy should adjust interest rates and implement quantitative easing to maintain economic stability during crises.In this clip
From this podcast
Conversations with Tyler
Scott Sumner on Monetary Rules, Blooming Late, and the Death of Cinema | Conversations with Tyler
Related Questions
Should government intervene in crises as discussed in the episode Scott Sumner on Money and the Fed and the clip Uncertainty in Economic Stimulus?
Should government intervene in crises as discussed in the episode Scott Sumner on Money and the Fed and the clip Uncertainty in Economic Stimulus?
Should government intervene in crises as discussed in the episode Scott Sumner on Money and the Fed and the clip Uncertainty in Economic Stimulus?