deja vu, page-23

Jonahs,

Sorry for the delay, but I have been having my daily siesta.

I know that there has been calls for the reintroduction of some sort pf gold standard, namely by gold bugs and some American politicians on the right and Austrian economists, but with the exception of Ron Paul, all the other politicians seem just to be playing politics, I think.

And the best advise that so far I heard is contained in the link bellow:

http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=143830&sn=Detail&pid=102055

As Murenbeeld suggests, to see how well that works one should study Greece...today!

By the way, Greece is in a de facto gold standard.

Incidentally, I have also heard the Fed being criticized by some economists for having acted too late during the recent crises and that would not have happened if the Fed was targeting NGDP.( Nominal GDP)

During the recent crises GDP fell but inflation stood for some time, leading the reserve bank to waste time because it was targeting inflation.

The problem is that NGDP targeting seems not to be a perfect framework for the Fed to act too.

http://www.economist.com/blogs/freeexchange/2011/11/case-against-case-nominal-gdp-target