This will be a confusing post, because I'm writing it to try to get my head clear on something. And it's still not clear. There are no answers here: only questions, and strange thoughts.
1. Lots of people believe the Inflation Fallacy: "Inflation makes us worse off because a 1% rise in prices means we can afford to buy 1% less stuff, duh!". It is hard work to explain to people why this is wrong, and each new generation has to be taught it anew. Ours the Task Eternal.
But if the central bank targeted NGDP, the Inflation Fallacy would be true. With the central bank holding the path of nominal spending constant, every extra 1% of inflation really would mean that real spending falls by 1%. Ordinary people would understand macroeconomics better, without us having to teach them anything. Would that be a Good Thing?