Thursday , November 22 2018
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Wednesday's Stock Market Decline

Summary:
Stocks dropped sharply this Wednesday morning. I don't view this decline in stock prices as being important. In recent years, stocks have often plunged for a few days, and then recovered. I put more weight on the level of stock prices, which is still quite high. Thus, I believe the macro economy is still in very good shape...

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Stocks dropped sharply this Wednesday morning.

I don't view this decline in stock prices as being important. In recent years, stocks have often plunged for a few days, and then recovered. I put more weight on the level of stock prices, which is still quite high. Thus, I believe the macro economy is still in very good shape...

Scott Sumner
Scott B. Sumner is Research Fellow at the Independent Institute, the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University and an economist who teaches at Bentley University in Waltham, Massachusetts. His economics blog, The Money Illusion, popularized the idea of nominal GDP targeting, which says that the Fed should target nominal GDP—i.e., real GDP growth plus the rate of inflation—to better "induce the correct level of business investment". In May 2012, Chicago Fed President Charles L. Evans became the first sitting member of the Federal Open Market Committee (FOMC) to endorse the idea.

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