We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …

Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price … variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of … consumer search suggest that the RIV-inflation relationship could differ from the RPV-inflation relationship. However, most …

Various papers have suggested that Price-Level targeting is a welfare improving policy relative to Inflation targeting …

price-level targeting relative to inflation targeting for business cycle stabilization and mitigating the effects of the … the stationary nature of the price level under price-level targeting by observing their inflation forecasting behaviour in … outcomes than inflation targeting. Our main result suggests that participants formulate inflation expectations consistent with …

The purpose of this paper is to make a quantitative contribution to the inflation versus price level targeting debate …. It considers a policy-maker that can set policy either through an inflation targeting rule or a price level targeting … that price level targeting dominates inflation targeting, although it can lead to much more volatile inflation depending on …

Like the gold standard, price level targeting (PT) involves not letting past deviations of inflation be bygones; both … output volatility and frequent resets. These problems reduce the expectational advantage of PT over inflation targeting …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …

We develop an experimental framework to investigate the quantity theory of money and the real effects of inflation in … an economy where money serves as a medium of exchange. We test the classical view that inflation reduces output and … welfare by taxing monetary exchange. Inflation is engineered by constant money growth. We conduct three treatments, where the …

2022Q1 to understand households' expectations about price and wage inflation, their respective links to views about labour … recent research, that households associate higher expected price inflation with worse labour market conditions. In contrast … standard macroeconomic models. These differing supply-side and demand-side views of price inflation and wage inflation are …

inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively …