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…

This content is for Free Trial and Subscriber members only.
Log In Register
Share

Comments are closed, but trackbacks and pingbacks are open.