, then the nominal income targeting eliminates the divergence of real output from its full information equilibrium. It is therefore concluded that nominal income targets are optimal under the condition of perfectly inelastic labour supply. Central bank discussion As of 2011, it was claimed that the Bank of England might be targeting nominal income and not inflation (at least in the short term), as inflation was greater than one percent above its target, and income was growing at nearly five percent. The Federal Open Market Committee of the US Federal reserve discussed the possibility of a nominal income target on September 21, 2010. The Reserve Bank of New Zealand, the pioneer of inflation targeting, responded directly to a Scott Sumner report on inflation targeting, noting its concerns with GDP figures often being restated and therefore being unsuitable as a consistent monetary policy framework. Developing countries Jeffrey Frankel's reasons for a developing country to target its NGDP were: A developing country needs to follow a credible economic policy with which it can survive. The IMF often tells a developing country to target its inflation rate, but inflation targeting makes it difficult for the country to handle an adverse supply shock or a terms-of-trade shock, because monetary expansion increases the prices of imported goods. If a country targets its inflation rate when it suffers negative supply shocks, its real GDP becomes volatile. Negative supply shocks are more common in developing countries, because their economies are more vulnerable to natural disasters, social unrest and unrelated policy errors. Terms-of-trade shocks such as oil price increases and commodity export price decreases have greater effects because they represent larger fractions of the economy. India is regularly subject to supply shocks, such as good or bad monsoons. Frankel argued countries who target NGDP have more flexibility in dealing with such shocks. Market monetarism Market monetarists are skeptical of traditional monetarism's use of monetary aggregates as policy variables and prefer to use forward-looking markets. They advocate a nominal income target as a monetary policy rule because it simultaneously addresses prices and growth. Proponents contend that national income targeting would reduce positive and negative fluctuations in economic growth. In recovery from a recession, market monetarists believe concerns over inflation are unjustified and policy should instead focus on returning the economy to a normal growth path. Conversely, in an inflationary environment, it provides a glide path to stability without overreacting.