Nominal GDP rose 7% year-over-year in the second quarter, faster than any nominal growth in the 1990s.
In deflation the nominal value of debts remains fixed even as nominal wages, prices and profits fall.
But does money supply directly boost nominal income, or does nominal income affect velocity and the demand for money?
Nominal home prices, they note could push nominal prices in 2015 to exceed levels reached during the housing bubble.
FORBES: Beware The Bubble In Homebuilders As Housing Prices Rise
As a result, nominal growth rose above nominal interest rates, debt levels fell by 250%, and stocks rallied between 1948 and 1969.
The first thing you heard was 'Tango Delta Nominal', which was touchdown nominal coded up so the world would not erupt into applause.
Yet, the debt-to-GDP ratio is a nominal figure and indeed refers specifically to the nominal stock of bond contracts the Federal Government has entered into.
When the discussion turns to nominal targeting, we can say Nominal Gross Domestic Income Level Targeting (NGDILT) ensures that total Wages and Profits grow at smooth steady rate.
FORBES: Dan Mitchell Wants to Ditch Keynesian-Laced GDP -- He's Right
U.S. corporate profits (which are expressed in nominal terms) have tended to rise and fall at about twice the rate of world nominal dollar GDP, suggesting double-digit profit growth again in 2006.
If that's right, then one of the big supposed benefits of nominal GDP targeting - that consumers and businesses will have some certainty about the future path of their nominal incomes - largely evaporates.
It would oblige Argentina to continue trying to adjust its real exchange rate by deflation (cutting nominal wages and prices in nominal terms), a process which has already forced the collapse of many businesses.
By pegging nominal interest rates at artificially low levels, the Fed is penalizing millions of people who have their assets in saving accounts or money market funds and are getting near zero nominal returns.
But the nominal figures, which are unadjusted for deflation, are far darker: in nominal terms, the economy shrank by more than 10%, at an annualised rate, between the first and second quarters of this year.
If the trade imbalance is sterilized and not allowed to affect the exchange rate, then there will be upward pressure on foreign prices and nominal incomes and downward pressure on U.S. prices and nominal incomes.
Various rules have been proposed, including a price-level rule (zero inflation), an inflation target rule (2 percent inflation), a nominal GDP target, and a Taylor rule designed to control the growth of nominal income by controlling the monetary base.
FORBES: The Limits Of Monetary Policy Call For Moral, Sound Money
Another former U.K. rate-setter and arch-dove, David Blanchflower, has pointed out that even if nominal-GDP targeting was a good idea in theory, it is a bad idea in practice because nominal GDP is hard to measure and prone to large revisions.
They point out that money supply growth ran 2.4 percent faster than nominal GDP growth during this period, when it had run below nominal GDP growth in 1959-69, 1969-79, and 1979-95, as would be expected with velocity increasing due to technological advance.
Even if our basic theory is that economy is elastic in response to nominal stress and plastic in response to real stress, a sudden change in rigidity combined with a large nominal shock could cause a very large plastic deformation in the economy.
Remaining consistent with this principle, Brian argues that when the Fed Funds rate (the rate set by the Fed) is lower than the nominal growth rate, the Fed is inflationary, and when the Fed Funds rate is higher than the nominal rate, the Fed is deflationary.
In effect, moving to nominal GDP targets would send a signal that the Bank was determined to get back the nominal growth in the economy that has been lost, even if it is at the cost of pushing inflation above 2% for a sustained period of time.
The idea behind this, roughly similar to the Carney argument for a nominal GDP target, is that the only way to stimulate activity, in a deeply deflationary environment is to convince people and businesses that you really will spend whatever it takes to ensure that prices and nominal demand will be higher next year than they are today.
But, suppose that you choked down on nominal demand by pulling money out of the economy.
Public pension outlays rising to over 10 percent of nominal GDP is a startling development.
Government figures show that nominal wages were down 0.9% in March from a year earlier.
In her Times essay, Romer calls on the Federal Reserve to begin targeting nominal GDP (NGDP).
FORBES: The Stunning Admission Of One Of Stimulus' Chief Architects
When a currency drops, the nominal price of hard assets in that currency generally rises.
For instance, suppose that any losses in nominal GDP during recession are quickly recovered.
Scaling nominal, on-the-go productivity from the small screen to the big one is a daunting task.
In a world of near-zero inflation, nominal prices are more likely to need to fall.
Nominal final sales to domestic purchasers fell way, way below trend starting in late 2008.
应用推荐