Paul Masson

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Staff Working Papers

Commodities and Monetary Policy: Implications for Inflation and Price Level Targeting

We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important consequences for global commodity prices.

Are Bygones not Bygones? Modeling Price Level Targeting with an Escape Clause and Lessons from the Gold Standard

Staff Working Paper 2008-27 Paul Masson, Malik Shukayev
Like the gold standard, price level targeting (PT) involves not letting past deviations of inflation be bygones; both regimes return the price level (or price of gold) to its target. The experience of suspension of the gold standard in World War I, resumption in the 1920s (for some countries at a different parity), and final abandonment is reviewed.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Credibility, Monetary policy framework JEL Code(s): E, E3, E31, E5, E52