World

Goldman Idea Could Let Inflation Out of the Bottle: Amity Shlaes

Nov. 3 (Bloomberg) -- There are bad ideas, and there’s the proposal that economists from Goldman Sachs Group Inc. released Oct. 14. They suggested that the Federal Reserve Board target a nominal gross-domestic-product growth rate of 4.5 percent to decide how much money to inject into the economy. The econo-speak name for this practice is “NGDP targeting.” The question is whether that unlovely abbreviation makes it into mainstream English and becomes policy.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.