Price-level targeting: a new monetary approach

Prior to the global financial crisis, inflation targeting appeared to be on an inexorable path towards universal acceptance. The number of countries that adopted formal targets increased every year following the Reserve Bank of New Zealand's pioneering adoption of the framework in 1989. A number of central banks that eschewed the formal adoption of explicit medium-term targets, notably the Federal Reserve, settled on a modus operandi so similar to that of formal targeters that they came to be kn