{"id":12366,"date":"2015-09-25T21:09:11","date_gmt":"2015-09-26T01:09:11","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=12366"},"modified":"2015-09-25T21:09:11","modified_gmt":"2015-09-26T01:09:11","slug":"japan-abandons-fed-style-inflation-targeting-and-targets-gdp-growth-instead","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2015\/09\/25\/japan-abandons-fed-style-inflation-targeting-and-targets-gdp-growth-instead\/","title":{"rendered":"Japan abandons Fed-style inflation targeting and targets GDP growth instead"},"content":{"rendered":"

Scott Sumner quotes Marcus Nunes:<\/p>\n

Japanese Prime Minister Shinzo Abe vowed on Thursday to raise gross domestic product by nearly a quarter to 600 trillion Japanese yen ($5 trillion), pledging to refocus on the economy after the passage of controversial security bills that eroded his popularity. Abe unveiled the plan at a news conference marking his election to a second three-year term as ruling Liberal Democratic Party leader and hence, premier. Abe stopped short, however, of setting a timeframe for the new GDP target, which could raise doubts about the goal.<\/p><\/blockquote>\n

System-based rules targeting (nominal) GDP growth are likely to deliver more stable and consistent economic performance than the discretionary monetary policy followed by the Fed. No matter how smart the people on the FOMC, they are reacting to imperfect data in a complex world. Many decisions, in hindsight, prove to be late. Sometimes with disastrous consequences.<\/p>\n

For a detailed discussion, see Marcus Nunes: The \u201cRules debate\u201d once again<\/a>.<\/p>\n

Read more at Japan adopts an NGDP target, Scott Sumner | EconLog | Library of Economics and Liberty<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Scott Sumner quotes Marcus Nunes: Japanese Prime Minister Shinzo Abe vowed on Thursday to raise gross domestic product by nearly a quarter to 600 trillion Japanese yen ($5 trillion), pledging to refocus on the economy after the passage of controversial security bills that eroded his popularity. Abe unveiled the plan at a news conference marking … <\/p>\n

Continue reading “Japan abandons Fed-style inflation targeting and targets GDP growth instead”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[57],"tags":[],"class_list":["post-12366","post","type-post","status-publish","format-standard","hentry","category-stock-markets"],"yoast_head":"\nJapan abandons Fed-style inflation targeting and targets GDP growth instead - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Japan abandons Fed-style inflation targeting and targets GDP growth instead - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Scott Sumner quotes Marcus Nunes: Japanese Prime Minister Shinzo Abe vowed on Thursday to raise gross domestic product by nearly a quarter to 600 trillion Japanese yen ($5 trillion), pledging to refocus on the economy after the passage of controversial security bills that eroded his popularity. 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The Yen strengthened, and long-term bond yields declined on the result. The Japanese government is in a debt trap caused by precarious\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Japanese Yen","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2026\/2026-02-09-jpy.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2026\/2026-02-09-jpy.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2026\/2026-02-09-jpy.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":6036,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/11\/06\/is-the-fed-finally-listening-to-scott-sumner\/","url_meta":{"origin":12366,"position":2},"title":"Is the Fed finally listening to Scott Sumner?","author":"Colin Twiggs","date":"November 6, 2012","format":false,"excerpt":"Brendan Greely writes of Scott Sumner. Sumner who holds a Ph.D. from the University of Chicago, made a suggestion in the late 1980s to the New York Federal Reserve. He proposed that the Fed set a target for nominal GDP\u2014real growth in GDP plus the rate of inflation. He felt\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":61771,"url":"https:\/\/thepatientinvestor.com\/index.php\/2025\/05\/24\/prepare-for-a-hard-landing\/","url_meta":{"origin":12366,"position":3},"title":"Prepare for a hard landing","author":"Colin Twiggs","date":"May 24, 2025","format":false,"excerpt":"Summary The timing is still unclear, but readers should prepare their portfolios for the growing risk of a hard landing Massive disruption of the delicate balance in global financial markets is likely to deliver a painful lesson in unintended consequences There are decades when nothing happens. There are weeks when\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Brent Crude","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-05-23-brent.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-05-23-brent.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-05-23-brent.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":63208,"url":"https:\/\/thepatientinvestor.com\/index.php\/2025\/11\/27\/japans-debt-trap\/","url_meta":{"origin":12366,"position":4},"title":"Japan’s debt trap","author":"Colin Twiggs","date":"November 27, 2025","format":false,"excerpt":"Key Points The yield on 30-year Japanese government bonds is rising steeply. Suppressing the yield would risk a Yen devaluation spiral and rising inflation. Allowing yields to rise would protect the Yen but threaten a funding crisis. Japanese government debt was 237 percent of GDP at the end of 2024,\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Japanese Public Debt-to-GDP","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-11-25-jp-debt-gdp.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-11-25-jp-debt-gdp.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-11-25-jp-debt-gdp.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":14117,"url":"https:\/\/thepatientinvestor.com\/index.php\/2016\/09\/13\/credit-bubbles-and-gdp-targeting\/","url_meta":{"origin":12366,"position":5},"title":"Credit bubbles and GDP targeting","author":"ColinTwiggs","date":"September 13, 2016","format":false,"excerpt":"In 2010 Scott Sumner first proposed that the Fed use GDP targeting rather than targeting inflation, which is prone to measurement error. Since then support for this approach has grown, with Lars Christensen, an economist with the Danish central bank, coining the term Market Monetarism. Sumner holds that inflation is\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/12366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=12366"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/12366\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=12366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=12366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=12366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}