price level targeting may be both incomplete and sticky. We find that complete confidence (or full credibility) is not a …

prices across sectors, the costs of stabilisation under price-level targeting remain much higher than under inflation …Recent research has shown that optimal monetary policy may display considerable price-level drift. Proponents of price-level … targeting have argued that the costs of eliminating the price-level drift may be reduced if the central bank responds flexibly …

indeterminacy. The interest rate rules we propose are price level targeting rules that respond to the forecasts of the future price …

in an open economy target rule, price level targeting is no longer consistent with optimal policy. The gains from …

inflation and price level targeting. …

stabilisation or even modern price level targeting. This move to exchange rate stabilisation was accompanied by the formation of …

households, price-level targeting can act as a powerful built-in stabiliser through automatic shifts in inflation expectations … lower bound of nominal interest rates and falling into a liquidity trap. Furthermore, credible price-level targeting can … embedded in actual long-term real interest rates. However, price-level targeting can imply welfare-reducing policy …

conventional wisdom, it is found that price-level targeting leads to a better trade-off between inflation and output …-gap variability than inflation targeting, when the central bank acts under discretion. In some cases, price-level targeting under …

conventional wisdom, it is found that price-level targeting leads to a better trade-off between inflation and output …-gap variability than inflation targeting, when the central bank acts under discretion. In some cases, price-level targeting under …