by Keith Weiner
It goes without question, among economists of the central planning mindset, that if a central bank can just set the right quantity of dollars, then the price level, GDP, unemployment, and everything else will be right at the Goldilocks Optimum. One such approach that has become popular in recent years is nominal GDP targeting.
How does a central bank affect the quantity of dollars? In discussing a nominal income targeting, Wikipedia gives the usual laundry list of how to do their magic: “…interest rate targeting or open market operations, unconventional tools such as quantitative easing or interest rates on excess reserves and expectations management…”
Other than expectations management — which is just telling the market “blah blah blah” — managing an income aggregate is about manipulating one interest rate or another.