The first concerned the increased certainty that it would provide regarding the price level 10, 20, or 30 years in the future. The second concerned the enhanced stabilizing properties that price-level targeting might offer in terms of reduced inflation and output variance. Provided agents were sufficiently forward  2  See White (2006).
Also see Diamond and Rajan (2009); Cagliarini, Kent, and Stevens (2010); and White (2009). 3  Discussions of the implications for the zero bound on nominal interest rates for monetary policy can be found in Amano and Shukayev (2010) and Lavoie and Murchison (2007–2008).