The two most prominent examples are price level targeting and nominal GDP level targeting, where central bank aim to stabilise the price level and nominal GDP respectively along some target path.
Proponents of level targeting strategies argue that they allow for a more powerful management of private sector expectations, leading to better stabilisation outcomes than under inflation targeting.9 In the case of a price level target, if there is downward pressure on the inflation rate so that the price level falls below its target path, then future inflation has to be temporarily higher in order to bring the price level back on track.