tag:blogger.com,1999:blog-5713178645208582139.post5070412572998125413..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Why a NGDP Level Target Trumps a Price Level TargetDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5713178645208582139.post-60168374572593972142010-11-04T22:03:06.278-05:002010-11-04T22:03:06.278-05:00No. The idea occurred to me reading the Lawrence W...No. The idea occurred to me reading the Lawrence White paper contrasting the Fed's "real bills" doctrine and the Hayek-Robbins preference (that you linked to long ago) and reading a Sumner post on Friedman's view of that 1920s boom. <br /><br />I find your view on the Fed in the 2003-2006 boom to be very similar to Hayek's view on the 1920s (Fed shouldn't have respondedJustin D. Tapphttps://www.blogger.com/profile/12618278252714742391noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-80202247627097517612010-11-04T14:11:54.123-05:002010-11-04T14:11:54.123-05:00JDTapp,
I am familiar with that argument and have...JDTapp,<br /><br />I am familiar with that argument and have been sympathetic to it in the past. But I would want to go back and look closely at the data before being certain. Any sources you recommend that make this argument?David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-86995019428666986262010-11-02T11:33:02.337-05:002010-11-02T11:33:02.337-05:00From 1921-1929 NGDP growth in the U.S. averaged so...From 1921-1929 NGDP growth in the U.S. averaged something like 3.7%. There was a big increase in Y and the price level fell slightly over the period. <br /><br />Friedman argues that Fed policy was too tight during that period. Austrians argue that it was too loose (the price level should have fallen further than it did). <br /><br />I see the 1920's boom similar to the 2003-2007 boom. AsJustin D. Tapphttps://www.blogger.com/profile/12618278252714742391noreply@blogger.com