Why all the fuss about NGDP?

By Deputy editor Tim Bennett Jan 31, 2013

Tim Bennett

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New Bank of England governor Mark Carney thinks central banks should focus on NGDP. Tim Bennett explains why his proposal has caused such a stir.


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Published in Video tutorials | More articles by Tim Bennett

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  • 1. J P Hamilton

    (01 February 2013, 05:40PM)  Complain about this comment

    I think a lot of people look at your video's Tim, they are quite informative and well presented, so I hope you keep them coming.

    good luck, J P Hamilton

  • 2. jake in japan

    (02 February 2013, 04:32AM)  Complain about this comment

    Nice Video,

    But when you mention the Federal reserve bank you fail to mention it is a private bank..!!! that lends money to the American government at interest, much like the ECB, IMF, World bank, and YES the "Bank of England" who's share holders names are hidden by the official secrets act.
    So we pay taxes to pay interest on a debt that is issued from a private bank.

    Part II. I wish for you to think about is if there was just 1 million £s in the system where would the money come from to pay the interest on the debt...

    Worked it out....That's right.. welcome to the biggest Ponzi scheme known, fractional reserve banking.. Bernie Madoff eat your heart out..

    Good day to you.. and I hope you found this informal..

    Check out "the American dream film" or "money as debt" on YouTube and the Zeistgeist.com second /2008 movie for a clear picture on central banks

  • 3. Mike

    (02 March 2013, 04:25PM)  Complain about this comment

    Thanks Tim. Now that you've explained GDP and NGDP, could you perhaps do a video explaining real government expenditure as a percentage of GDP i.e. inflation adjusted? Seems to me we are not cutting spending in real terms when looking at the official figures over the last 15 years or so. We are instead cutting the increase in government spending (hasn't this always been the more accurate description of spending cuts?). This is not what we want to hear or indeed what most people feel every day but our spending is now a whopping 45% of GDP v. 35% 15 years ago. No wonder we're broke and that we keep wanting growth to make the figures look relatively better. The 3 biggest and thorniest areas in public sector spending are Pensions, the NHS and Welfare.

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