Ergo, Dick

NGDP targeting? My question is always, so how do we make sure we get more RGDP and less inflation? Old (2011) Beckworth answers the question:

The best rule would force the Fed to try to stabilize total current-dollar spending or nominal GDP around some targeted growth path. For example, it could target a 5 percent yearly growth rate in nominal GDP. That target would, on historical patterns, result on average in 3 percent real economic growth and 2 percent inflation each year.

... on historical patterns ...

There ya go. That's how it has worked in the past, so that's how we can expect it to work in the future.

Oh, there is a word for that...