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Price‐level targeting ‐the next objective for monetary policy?
Author(s) -
Lilico Andrew
Publication year - 2000
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00222
Subject(s) - deflation , economics , monetary policy , inflation (cosmology) , price level , inflation targeting , monetary economics , certainty , great depression , price of stability , keynesian economics , philosophy , physics , archaeology , epistemology , theoretical physics , history
Inflation‐targeting monetary policy is compared with price‐level targeting. It is argued that price‐level targeting offers greater certainty about the long‐term inflation rate, greater economic growth, a superior response to a deflationary depression, and other advantages.