Scott Sumner wins

That is my impression of what is going on here (see Fed minutes too):

The Fed also said for the first time that it was considering targeting a path for the level of nominal gross domestic product as a way to increase price expectations.

And in case you aren’t sure who I’m talking about – Scott Sumner is the author of this excellent blog here, and has been pushing the NGDP target line for the entire crisis.  See the start of the blog in February 2009 – in the depths of the crisis.

While such a target doesn’t help in the face of a “supply side” shock, it does deal with “demand side” issues eg here.

Update:  His semi ‘celebration’ here.