[Note: This piece was posted elsewhere recently. I reproduce it here (as I´ll do with other pieces over time), because it is in the spirit of what “Money Mischief” wants to accomplish.] Unlikely. Also, it´s likely not worse and suffers from the same shortcoming of inflation targeting, being based on the false premise of the existence of a Phillips Curve. I plan to show, hopefully convincingly, that the New Keynesian model (the centerpiece of which is the New Keynesian Phillips Curve) is grossly unsuitable for monetary policy analysis.
How, exactly, would you have executed NGDPLT during 2020?