Scott Sumner is Economics Professor at the Bentley University.
Do you think that the Fed is going to embrace the idea of nominal GDP targeting due to the current speech of Chairman Bernanke?
Could you please summarize us the benefits of NGDP in the Lesser Depression?
NGDP targeting would have prevented the lesser depression, as falling NGDP was the main cause.
The economic outlook is frightening. It seems a long way to go. What is your suggestion for the Fed in terms of communication with the Congress and the public in relation to the implication of the next steps (particularly nominal GDP targeting)?
We need a more expansionary monetary policy to increase NGDP growth. Preferably an explicit target of some sort from the Fed. After that occurs we need to cut back unemployment insurance from 99 weeks to the regular 26 weeks.
Thank you very much.