CRITIQUE: I am a microeconomist, so i am wrong about little things, but isn't the easiest way to increase nominal GDP growth is to pump up the money supply? Didn't the Carter Admin do that which resulted in double digit inflation? And didn't Volker have to come in and raise interest rates to bring inflation expectations down. SUGGESTION: run this solution against post war data using standard macro models see how it would have performed.
CRITIQUE: I am a microeconomist, so i am wrong about little things, but isn't the easiest way to increase nominal GDP growth is to pump up the money supply? Didn't the Carter Admin do that which resulted in double digit inflation? And didn't Volker have to come in and raise interest rates to bring inflation expectations down. SUGGESTION: run this solution against post war data using standard macro models see how it would have performed.