George Selgin Takes His Monetary Keynesianism Over to IBD

George Selgin,the Director of the Cato Institute's Center for Monetary and Financial Alternatives, continues promoting his focus on aggregates, specifically NGDP.This time at Investor's Business Daily:

Instead of trying to target either inflation or employment, the Fed ought to target the economy's overall level of spending or its statistical counterpart, NGDP, which stands for the dollar value of nominal gross domestic product.

The only Koch-affiliated DC  economist who seems to understand the folly in this approach is Peter Boettke. In Living Economics, he writes, in just a slightly different context:

[T]he focus on aggregates made it difficult to see how investment expenditures were or were not producing a structure of capital that was sustainable...

 --RW