Two competing approaches have been suggested to deal with this alleged shortcoming: A higher inflation target,13 and a switch to targeting the price level or, more precisely, the price-level path.14 Neither of the two alternatives convinces me.
The more we do these things, the greater the scale of the innovations that will happen, and, maybe, the greater the efficiencies. Indeed, I remember the times when, the financial incentives needed for wind and solar [energy] were just extremely high. Now, the technologies have improved to the point where it is getting quite competitive [with non-renewable energy sources].