Interesting (and amusing post) with good discussion in the comments. As expect from Worthwhile Canadian Initiative at this point. Good stuff, especially if you like monetary economics, macro, LOTR, or like me, all three...
They are looking to pursue a form of Evans rule in which the central bank will keep rates low as long as unemployment is still above 6.5% and inflation is below 2.5%. Good move in my opinion, not the best, but not bad either.
What are everyone's preferred means of stimulus in downturns. Do you think there should be a built-in system of stimulus (such as NGDP targeting) or do you think it should be reactionary? Fiscal, monetary, both, or neither? And why?
Share and discuss opinions below.