Amazing how this idea is now starting to go mainstream. Scott Sumner is going to be famous soon.
Here’s the WSJ and Scott’s commentary. The article has a lot of links to a lot of good information (in particular here) on whether NGDP targeting will work.
One thing that is a bit annoying is that the hierarchy of ideas goes: #1 Level targeting, #2 NGDP level targeting.
Targeting nominal GDP rates isn’t actually Sumner’s big priority, if I’m reading him correctly. Level targeting of inflation would be better than rate targeting NGDP.