We survey recent literature comparing inflation targeting (IT) and price-level targeting (PT) as macroeconomic stabilization policies. Our focus is on New Keynesian models and areas which have seen significant developments since Ambler’s (2009) survey: the zero lower bound on nominal interest...

In a recent article Pfleiderer (2020) argues that models should be put through a 'reality filter' before they should be taken seriously as a basis for empirical testing or policy analysis. He regards models that make dubious assumptions as 'chameleons', because while as theory they may give...

In a recent article Pfleiderer (2020) argues that models should be put through a 'reality filter' before they should be taken seriously as a basis for empirical testing or policy analysis. He regards models that make dubious assumptions as 'chameleons', because while as theory they may give...