ABSTRACT
It is possible that a central bank choses the right tool but the wrong target. This is the topic of this chapter. In particular, what would be the effect should a central bank target a too high nominal income growth rate. A relevant case is when a monetary policy occurs with inflation absent, as arguably was the case in the years prior to the 2008 crisis. A few examples of why an excess of money supply may not result in higher price levels (at least soon enough) is also a discussion topic of this chapter.
