The Bank of England has been missing its inflation targets and is also experiencing weak economic growth at the same time. What would be the potential advantages for nominal GDP targeting and inflation control targeting, the pros and cons of each, in the context of the U.K. experience? Generally, how would nominal GDP targeting compare with alternatives during a period of stagflation, where we have high unemployment and high inflation at the same time?
On November 15th, 2011. See this statement in context.