formation, model uncertainty, and downward nominal wage rigidities. On the normative side, price level targeting delivers large …

demand shock and an adverse financial shock. I find that by adopting a price-level targeting rule, the monetary authority … hamper the monetary authority from offsetting the negative effects of an adverse shock. Second, I analyze whether price-level … targeting, through the stabilization of private sector expectations, might be a better monetary rule than inflation targeting in …

inflation targeting cum exchange rate stabilization and a price-level targeting are more suitable rules in minimizing … financial accelerator mechanism is working, a price-level targeting rule dominates. One caveat is that the source of the shock … plays an important role. Once the financial shock is not operative, the gain from a price-level targeting rule decreases …

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 …

should be paid to asset market stability. Once the role of asset markets in the mechanics of inflation or price-level … targeting is made explicit, such a policy will promote orderly asset market behaviour. This hinges on the role broader money and …

This paper provides a sensitivity analysis of the relative performance of inflation targeting, price level targeting …

This paper provides a sensitivity analysis of the relative performance of inflation targeting, price level targeting …

not in Australia, New Zealand, or Sweden - actually resemble price-level targeting. In particular, the price level closely … inflation targeting are rejected by the data in favor of those implied by price-level targeting. These results indicate … their current policies already resemble price-level targeting, the welfare gains of replacing in?ation with (explicit) price-level …

not in Australia, New Zealand, or Sweden - actually resemble price-level targeting. In particular, the price level closely … inflation targeting are rejected by the data in favor of those implied by price-level targeting. These results indicate … their current policies already resemble price-level targeting, the welfare gains of replacing inflation with (explicit …