Scott Sumner on what macroeconomists have wanted all along...

... They just didn't know it. In this new blog post ( http://www.themoneyillusion.com/?p=15208 ) Scott Sumner makes the point that NGDP targeting is in fact what economists who focus on maco issues have ALL been advocating for the past half-century, even if they did not realize it. The crux of his argument is based on our friend MV=PY; that the focus of all stabilization-policy debates has been how to stablize PY, which is in fact nominal GDP. And I think he's dead right.

"Now that we've figured out how to tame the business cycle, anyone want to get a drink?"