All quiet on the nominal front

Little has happened to the NGDP outlook in the past week. It still looks like we’re set for about 4% nominal growth from the current quarter through to 2018Q1. This is probably about as good as we can expect in the current environment, so let’s be grateful for it. 4% nominal growth isn’t ideal, it doesn’t give employers much opportunity to cut real wages through inflation, and doesn’t do anyone who took out debt pre-2008 any favors. Yet 4% is enough to keep the economy expanding and to stave off recession.  Barring a major change in the direction of financial…

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