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Price-Level Targeting and Inflation Expectations: Experimental Evidence
Staff Working Paper 2011-18 Robert Amano, Jim Engle-Warnick, Malik ShukayevIn this paper, we use an economics decision-making experiment to test a key assumption underpinning the efficacy of price-level targeting relative to inflation targeting for business cycle stabilization and mitigating the effects of the zero lower bound on nominal interest rates.Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy framework JEL Code(s): E, E3, E32, E5, E52
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