Why we all need to know about NGDP

There’s nothing very new about the idea that a central bank could target nominal GDP rather than inflation. Sir Samuel Brittan has been lobbying for this since before the Bank of England was made independent; Giles Wilkes, now Vince Cable’s special advisor, wrote a compelling paper proposing it a couple of years ago. More recently, a number of American bloggers have been waging a campaign for targeting NGDP – which … Continue Reading ››

What today’s jobs numbers really tell us

I was a little bemused this morning to hear the latest unemployment figures being touted by cabinet ministers as the best in a decade. Granted: they’re pretty solid, and they show that the labour market is continuing to improve. Unemployment is falling, youth joblessness is down, the total number of people in work is still climbing and the claimant count, an alternative measure which offers an even more up-to-date assessment … Continue Reading ››