Modeled Behavior commands: "Now is the time for all high profile economists to speak up for nominal GDP targeting."
That's nominal GDP level targeting, MB.
OUR DEMAND: CLOSE THE GAP BACK TO THE PRE-2007 NOMINAL GDP GROWTH TREND BY 2015:
Adopt the Goldman-Sachs Economic Forecasting Plan to close the gap between the level of nominal GDP and the pre-2007 trend by 2015 by:
Taking the Federal Reserve's balance sheet up to $5T by the end of 2012:QI.
Thereafter, unwind the asset purchases back to the current $2.7T balance sheet gradually as nominal GDP growth increases.
Thereafter, announce that if the forecast nominal GDP growth rate over the next year falls below 7% that the Federal Reserve will suspend its unwinding of its balance sheet and begin increasing it again.
Thereafter, announce that the Federal Reserve will do whatever it takes--market interest rates, charging interest on reserves, asset purchases, loan guarantees, bank nationalizations--to hit its noinal GDP level targets.
Announce that it plans to resume a nominal GDP growth target of 4.5% per year as of 2015