@article{Stabilization:1206, recid = {1206}, author = {Ambler, Steve}, title = {Price-Level Targeting and Stabilization Policy: A Review}, publisher = {Bank of Canada}, address = {2007}, pages = {1 online resource (iii, 27 pages)}, abstract = {The author surveys recent articles on the costs and benefits of price-level targeting versus inflation targeting, focusing on the benefits and costs of price-level targeting as a tool for stabilization policy. He reviews papers that examine how price-level targeting affects the short-run trade-off between output and inflation variability by influencing expectations of future inflation. The author looks at the implications of this argument for assigning an objective based on price-level targeting to a central bank that is unable to commit to its future policies. He discusses some recent papers that examine how price-level targeting can help to avoid the zero-bound problem, and papers that examine the incentives created by price-level targeting to change the degree of indexation of private contracts.}, url = {http://www.oar-rao.bank-banque-canada.ca/record/1206}, doi = {https://doi.org/10.34989/sdp-2007-11}, }