. . . but if it’s a one hit wonder like the Arctic Monkeys—I’ll take it. Claire Jones of the Financial Times did an article about my role in the NGDP targeting movement:
In 2006, rock band the Arctic Monkeys smashed the record for the fastest-selling debut album in the UK without the help of any of the main record labels that dominate the music industry.
The band’s achievement can be compared to Bank of England governor designate Mark Carney floating the possibility of dropping inflation targeting – a cornerstone of economic policy making in many of the big economies – in favour of nominal GDP targeting.
Like the Arctic Monkeys, the growing popularity of this policy was down to the internet’s ability to turn a niche idea into a mainstream success. Monetary policy’s main record label equivalents are the Ivy League universities. Many of the ideas that develop into policy frameworks begin life here, and it is also the place where many of the top-ranking central bankers begin their careers.
However, the revival of interest in nominal GDP targeting owes more to an academic based at the relatively little-known institution of Bentley University in Waltham, a commuter suburb west of Boston.
In 2009, Scott Sumner, a professor at Bentley, set up a blog, the Money Illusion, in frustration at the state of the debate on how monetary policy could be used to cure the US economy’s ills.
“In late 2008, there was a dramatic plunge in demand, the textbook solution to which is monetary stimulus. But people forgot about unconventional techniques,” Mr Sumner told the Financial Times. “I’m not really that well known and so if I’d tried to use the conventional channels, I wouldn’t have had much luck.”
Seriously, I greatly appreciate Ms. Jones’s piece, which gives me more credit
that than I deserve. Lots of other bloggers are also working tirelessly on this project.