Will the UK inflation target be replaced by a target for nominal GDP? This question has gained force from a recent speech by Mark Carney, the next Governor of the Bank of England, in which he said: "Adopting a nominal GDP (NGDP)-level target could in many respects be more powerful than… inflation targeting…When policy rates are stuck at the zero lower bound, there could be a more favourable case for NGDP targeting."
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