Price-Level Targeting versus Inflation Targeting: A Free Lunch?(Price-level targeting appears to have more advantages than those commonly ... from: Journal of Money, Credit & Banking

This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on August 1, 1999. The length of the article is 8594 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: Price-level targeting (without base drift) and inflation targeting (with base drift) are compared with persistence in output (generated by sticky prices, for instance). Counter to conventional wisdom, price-level targeting results in lower short-run inflation variability than inflation targeting (if output is at least moderately persistent). Price-level targeting also eliminates any average inflation bias. Even if the preferences of society correspond to inflation targeting, it may nevertheless prefer to assign price-level targeting to the central bank. Price-level targeting thus appears to have more advantages than those commonly acknowledged.

Citation Details
Title: Price-Level Targeting versus Inflation Targeting: A Free Lunch?(Price-level targeting appears to have more advantages than those commonly acknowledged)(Statistical Data Included)
Author: Lars E.o. Svensson
Publication:Journal of Money, Credit & Banking (Refereed)
Date: August 1, 1999
Publisher: Ohio State University Press
Volume: 31 Issue: 3 Page: 277

Article Type: Statistical Data Included

Distributed by Thomson Gale