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Marcus Nunes and Benjamin Cole: Market monetarism: Roadmap to economic prosperity

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  1. For a more in-depth treatment of the Market Monetarist School and NGDP targeting, see Christensen (2011).

  2. It is important to note the data are not unambiguous. White (2012), using similar data, argues that monetary policy was in fact too loose during this time.

  3. On the futures market: “It is advised by many Market Monetarists that a futures market for NGDP be set up, so that the central bank would offer to buy and sell NGDP futures contracts at a price that would change at the same rate as the NGDP target. Investors would initiate trades as long as they saw profit opportunities from NGDP being above (or below) the target. The money supply and interest rates would adjust to the point where markets expected NGDP to reach the target. These new-fashioned open market operations would automatically tighten or loosen the money supply and raise or lower interest rates” (2).


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Correspondence to Alexander Salter.

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Salter, A. Marcus Nunes and Benjamin Cole: Market monetarism: Roadmap to economic prosperity . Rev Austrian Econ 28, 107–113 (2015).

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