That said, we now have the ability to construct the kinds of complex economic models – multi-goods models with relative price movements – that are important for conducting research into price-level targeting.
The Bank of Canada’s research agenda Given the nature of the questions we have regarding both a lower inflation target and pricelevel targeting, there is a clear need for a lot of research to be done in a short period of time if we are to have a thorough discussion of the alternatives before the next renewal in 2011.