Theybelieve that the frequentfluctuationofnominalandrealexchange rates under thefloating exchange rate regimewillinevitablylead to the reduction in the volume of internationaltrade.
But, as I said on Thursday, the biggest argument against that you hear from people at the Bank is that our "flexible inflation targeting" regime already gives you everything you might have wanted from a nominal GDP regime.
The MPC has "looked through" the supply shocks that have hit the economy and pushed up inflation over the past few years - just as it might have done under a nominal GDP regime.