NGDP, on the other hand, does not make adjustments for the changing value of the dollar. NGDP gives the value of output in current dollar terms, without adjustments for inflation, of all output in the specified period of time.
NGDP will be stochastically wedged away from current tradebook debt quantities, we are not complete but deliberately congested. Price uncertainty is larger than NGDP uncertainty, true. Anything on the betting market inherits a tradebook uncertainty.
The standard S&L pit is an asynchronous NGDP bet between depositors and borrowers, when the current NGDP bet is out of error bounds, the market matchers computer the new estimate of NGDP. The pit is not a central bank, nor bank capital, it is a spreadsheet function.
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