@article{Price-Level:1523,
      recid = {1523},
      author = {Cateau, Gino and Kryvtsov, Oleksiy and Shukayev, Malik and  Ueberfeldt, Alexander},
      title = {Adopting Price-Level Targeting under Imperfect Credibility  in ToTEM},
      address = {2009},
      pages = {1 online resource (iii 30 pages)},
      abstract = {Using the Bank of Canada's main projection and  policy-analysis model, ToTEM, this paper measures the  welfare gains of switching from inflation targeting to  price-level targeting under imperfect credibility.  Following the policy change, private agents assign a  probability to the event that the policy-maker will revert  to inflation-targeting next period. As this probability  decreases and imperfect credibility abates, inflation  expectations in the economy become consistent with  price-level targeting. The paper finds a large welfare gain  when imperfect credibility is short-lived. The gain becomes  smaller with persisting imperfect credibility, turning to a  loss if it lasts more than 13 years.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1523},
      doi = {https://doi.org/10.34989/swp-2009-17},
}