Scott Sumner succinctly explains his market monetary proposal via “An imaginary conversation“.
The Zen Master: Money is too tight.
Exasperated Fed official: But what do you want us to do?
The Zen Master: First tell me where you want to go?
Exasperated Fed official: What do you mean?
The Zen Master: Provide an observable metric for the path of AD over time, and then tell us all the preferred trajectory of that indicator.
Exasperated Fed official: OK, we’d like to see total spending rise by 6% a year for two years, then 4.5% per year thereafter. But what do you want us to actually do?
The Zen Master: You’ve just done it.
PS. The master of monetary metaphors (Nick Rowe) has a couple highly recommended posts on the implication of various forms of price (and wage?) stickiness. (Here and here.)