JP Koning makes the case that even if Greece were to leave the Eurozone and institute a new currency (call it the New Drachma), Athens would still not have independent monetary policy: if households and firms continue to post prices in Euros rather than New Drachmas, Greek monetary policy would not be able to [...]
Edit: The critique in this post – that NGDP targeting cannot achieve zero inflation in the long run without discretion – is somewhat tempered by my 2017 follow-up here: perhaps zero long-run inflation would be inferior to a long-run Friedman rule; which in fact can be naturally implemented with NGDP targeting.
NGDP growth [...]
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