The most interesting session I attended at the Southern Economic Assn. meetings over the (weekend + Monday) was on nominal income targeting as the least-bad monetary policy rule for a fiat money regime.

Now comes word that a short monograph on the topic, one I've been recommending to people for years, is available for download at a zero price from the Institute of Economic Affairs. (Insert economist joke here about how a price less than zero isn't feasible.) It is of course George Selgin's Less Than Zero: The Case for Falling Prices in a Growing Economy, first published 1997. Here's the page from which you can download the pdf. Selgin updates Hayek's argument for the central bank to stabilize nominal income, such that when productivity gains reduce the prices of particular goods, the central bank doesn't inject money to try to offset the resulting decline in average prices. Less stress on the price system, no disturbance of the loanable funds market.