Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53961 
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dc.contributor.authorAmano, Roberen
dc.contributor.authorEngle-Warnick, Jimen
dc.contributor.authorShukayev, Maliken
dc.date.accessioned2011-09-12-
dc.date.accessioned2011-12-15T12:58:48Z-
dc.date.available2011-12-15T12:58:48Z-
dc.date.issued2011-
dc.identifier.pidoi:10.34989/swp-2011-18en
dc.identifier.urihttp://hdl.handle.net/10419/53961-
dc.description.abstractIn 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. In particular, we attempt to infer whether experimental participants understand the stationary nature of the price level under price-level targeting by observing their inflation forecasting behaviour in a laboratory setting. This is an important assumption since, without it, price-level targeting can lead to worse outcomes than inflation targeting. Our main result suggests that participants formulate inflation expectations consistent with the target-reverting nature of the price level but that they do not fully utilize it in their forecasts of future inflation.en
dc.language.isoengen
dc.publisher|aBank of Canada |cOttawaen
dc.relation.ispartofseries|aBank of Canada Working Paper |x2011-18en
dc.subject.jelE32en
dc.subject.jelE52en
dc.subject.ddc330en
dc.subject.keywordMonetary policy frameworken
dc.titlePrice-level targeting and inflation expectations: Experimental evidence-
dc.typeWorking Paperen
dc.identifier.ppn668099135en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:bca:bocawp:11-18en

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