An unanticipated rise in the price level redistributes wealth from lenders to borrowers. Its
size depends on the monetary policy regime, as inflation targeting (IT) and price-level …

In this chapter we provide a critical and selective survey of arguments relevant for the
assessment of the case for price-level path stability (PLPS). Using a standard, hybrid new …

How important are the benefits of low price-level uncertainty? This paper explores the
desirability of price-level path targeting in an estimated DSGE model fit to Canadian data …

I analyze how the introduction of financial frictions can affect the trade-off between output
stabilization and inflation stability and whether, in the presence of financial frictions, the …

How important are the benefits of low price-level uncertainty in the presence of financial
shocks? This paper explores the desirability of price-level path targeting in a small open …

Over the last fifteen years, central banks around the world have been adopting inflation-
targeting monetary policies. The goal of this paper is to examine the effectiveness of this …

This paper examines the impact of a permanent shock to the productivity growth rate in a
New Keynesian model when the central bank does not immediately adjust its policy rule to …

Over the last fifteen years, central banks around the world have been adopting inflation-
targeting monetary policies. The goal of this paper is to examine the effectiveness of this …

In the paper, we provide a critical and selective survey of arguments relevant for the
assessment of the case for price level path stability (PLPS). Using a standard hybrid new …