tag:blogger.com,1999:blog-5713178645208582139.post6520056009626858218..comments2024-03-17T03:26:42.785-05:00Comments on Macro Musings Blog: How the Fed Can Minimize Asset BubblesDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5713178645208582139.post-88796794522884900752008-05-15T14:37:00.000-05:002008-05-15T14:37:00.000-05:00JCB:One could use higher frequency proxies for GDP...JCB:<BR/><BR/>One could use higher frequency proxies for GDP--such as the monthly coincident indicator--along with the monthly CPI to get timely and robust estimates of nominal GDP. <BR/><BR/>Consider the main alternative, the Taylor rule. It requires estimates of the 'neutral' interest rate as well as potential GDP. There is no exact science on how to estimate these two important pieces in David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-76183331066589772802008-05-15T13:35:00.000-05:002008-05-15T13:35:00.000-05:00With nominal GDP targeting, I would be a bit worri...With nominal GDP targeting, I would be a bit worried about the problem of data revision. Isn't there a danger that policy could react to spurious data, leading to even more volatility?Anonymousnoreply@blogger.com