In theory price-level targeting is superior to inflation-targeting because it provides more certainty about the long-term purchasing power of money.
Financial and business terms. 2012.
Price Level Targeting — A monetary policy goal of keeping overall price levels stable, or meeting a pre determined price level target. The price level used as a barometer is the Consumer Price Index (CPI), or some similarly broad measure of cost inputs. A central bank… … Investment dictionary
Inflation targeting — is a monetary policy in which a central bank attempts to keep inflation in a declared target range typically by adjusting interest rates. The theory is that inflation is an indication of growth in money supply and adjusting interest rates will… … Wikipedia
United States Consumer Price Index — The U.S. Consumer Price Index is a time series measure of the price level of consumer goods and services. The Bureau of Labor Statistics, which started the statistic in 1919, publishes the CPI on a monthly basis. The CPI is calculated by… … Wikipedia
Inflation Targeting — A central banking policy that revolves around meeting preset, publicly displayed targets for the annual rate of inflation. The benchmark used for inflation targeting is typically a price index of a basket of consumer goods, such as the Consumer… … Investment dictionary
Monetary policy — Part of a series on Government Public finance File:Governmentbhj,i,gu Vedder Highsmith detail 1.jpeg … Wikipedia
Monetary policy of the Philippines — Monetary policy is the monitoring and control of money supply by a central bank, such as the Federal Reserve Board in the United States of America, and the Bangko Sentral ng Pilipinas in the Philippines. This is used by the government to be able… … Wikipedia
Knut Wicksell — Johan Gustaf Knut Wicksell (December 20, 1851 in Stockholm ndash; May 3, 1926 in Stocksund) was a Swedish economist.BiographyWicksell was born in Stockholm, Sweden on December 20, 1851. His father was a relatively successful businessman and real… … Wikipedia
Schwedische Krone — Krone Staat: Schweden Unterteilung: 100 Öre ISO 4217 Code: SEK Abkürzung: Skr Wechselkurs: (18. November 2011) 1 EUR = 9,1606 SEK 1 SEK … Deutsch Wikipedia
Commercial planning — is the term commonly used for commercializing a product. The success of a new product depends not only on the idea behind the product, but also on the marketing of the new product before, during and after the product launch. New Product Launching … Wikipedia
Demand for money — The demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits. It can refer to the demand for money narrowly defined as M1 (non interest bearing holdings), or for money in the broader sense… … Wikipedia
