NGDP Level Targeting Rules Proven Superior for Central Bank Objectives.
Central banks use different rules to make decisions about money. Researchers looked at 12 rules from 1955 to 2017 to see which ones work best for the US economy. They found that rules focusing on NGDP or Taylor types are good for reaching the central bank's goals in different periods like stability, crisis, or recovery. NGDP level targeting rules are often the best choice.