One is that for every production process with a material process lag, there is an ‘in-process’ state. Some of these provide important, additional information on the state of the economy. The stock of construction projects approved or commenced, but not completed, tells us a lot about near-term future construction activity.
[12] Kenneth Rogoff (1985), “The Optimal Degree of Commitment to an Intermediate Monetary Target”, the Quarterly Journal of Economics, 100(4): 1169-1189. [13] See Gabriel Makhlouf (November, 2022), “Monetary policy, regulation and inequality: a tale of inter-linkages” for my views on monetary policy and inequality, which draws on the discussion as part of the ECB’s 2021 strategy review, as summarised Brand, Claus, et al.