“It wouldn’t guarantee a V-shaped recovery but it would certainly increase the probability of one. I do suspect there are some people around the Treasury that are probably thinking about things like this.”
NGDP is the value of all goods and services produced in the economy, unadjusted for inflation. Early advocates of targeting it included James Meade, the Nobel Prize-winning British economist, in 1978. The idea was mooted again in a speech by Mark Carney shortly before his appointment as the Bank’s governor in 2013, only to be rejected by the Treasury.
Giles Wilkes, a former Downing Street economic adviser,