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NGDP Targeting

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Scott Jefferies posted on Mon, Jun 22 2009 11:06 AM

i can understand why keynesians would support propping up ngdp, but ive also heard(mainly from scott sumner) that some austrians such as roger garrison and fa hayek support this type of monetary control. does anyone know of a possible austrian explanation of the benefits of propping up ngdp, and how theyd outweigh the costs of the dislocations caused by the means in this form of targeting?

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scineram replied on Mon, Jun 22 2009 11:23 AM

No they want it stabilized.

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scineram:

No they want it stabilized.

i can understand how austrians can argue for stabilizing ngdp during boom times, but how would hayek explain why stabilizing it during busts and propping it up(like during the great depression) would be benificial if this is indeed what he argued near the end of his time?

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