A new look at price level targeting

Abstract

1 Introduction 3 2 Context 4 3 Price-level and inflation targets 6 4 Communicating the Price Level Target 11 5 Intermediate regimes 13 6 Uncertainty and Robust Policy 13 7 Changing the Regime 14 8 Concluding remark 16 List of charts Chart 1. Price level path targets and inflation targets contrasted 7 Chart 2. Inflation Experience Compared to a Price Level Target 8 Chart 3. Reacting to Shocks under Inflation and Price level Targets 9