Discussion Paper

All in the family: the close connection between nominal-GDP targeting and the Taylor Rule

Abstract: The classic Taylor rule for adjusting the stance of monetary policy is formally a special case of nominal- gross-domestic-product (GDP) targeting. Suitably implemented, moreover, nominal-GDP targeting satisfies the definition of a \\"flexible inflation targeting\\" policy rule. However, nominal-GDP targeting would require more discipline from policymakers than some analysts think is realistic.

Keywords: Monetary policy;

Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Staff Papers

Publication Date: 2012

Issue: Mar

Order Number: 17