And she hits a home run. Actually, if I may extend the baseball analogy a bit, she hits a grand slam. The bases were loaded with Scott Sumner on third, Goldman Sachs on second, and Paul Krugman on first. Coach Bennett McCallum was standing near the dugout screaming instructions. Digging her cleats into the clay and readying her bat, Christina Romer took a hard swing at the fastball. The ball exploded off the bat, flew over the fence, and hit baseball fan Ben Bernanke right in the gut. After getting his breath back, Ben Bernanke picked up the ball and to his surprise found the following message on it: "Time to man up and act like a Volker. Initiate Nominal GDP level targeting." Will he? Or will he take the home run baseball and its message and throw it back on the field?
Brad DeLong gives reasons why he may not adopt nominal GDP level targeting. Paul Krugman explains why now more than ever he should run with it. Ultimately, Christina Romer is reminding Ben Bernanke that fortune favors the bold. And a move to nominal GDP level targeting would be bold, the kind of bold the economy sorely needs.