Well, leave aside what Japan does or does not do in fact, let us look at what you say you mean by nominal growth theory... You say it is The idea that the central bank should increase or decrease the money supply it controls to bring the nominal (as opposed to real) GDP to grow at a relatively constant rate....... Y = py, so Ydot = pdot + ydot; ydot (real gdp growth), would be said by economists to be a function of technological progress, demographics and other exogenous factors, certainly not amenable to the Central Banks manipulations... so you seem to be saying the nominal growth theory is one of setting money supply to match real growth plus inflation... Do you?
Posted on: Fri, 28 Mar 2014 02:21:09 +0000
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