Inflation versus price-level targeting (with P. Minford)

Inflation versus price-level targeting: A new survey of theory and empirics

Michael Hatcher, University of Southampton

Patrick Minford, Cardiff University

Published on voxeu, CEPR’s Policy Portal on May 11 2014.

Price stability is the key goal of almost every central bank in the world. But does that mean stable price levels or inflation rates? The main difference between inflation targeting and price-level targeting is the consequence of missing the target.

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