Monhamed El Erian, the CEO of PIMCO, has suggested NGDP targeting or shifting to Employment/Population targetting in an article for Project Syndicate. Granted PIMCO have some form for being a bit Keynesian in its policy proposals, but its still interesting to see something this radical being proposed by them.

In assessing how far it is from meeting its mandate, the Fed may be better served by shifting from unemployment to employment thresholds (for example, the employment/population ratio). It could even start moving to a more holistic operational measure (say, nominal GDP), together with indicators of the economy’s structural fragility.