16 One of the main concerns identified in 2006 therefore seems to have been addressed; on balance, price-level targeting appears to be able to provide superior performance in a multi-good world characterized by large relative price shocks.
17 Unfortunately, all of these encouraging results are derived from models in which agents are, for the most part, forward looking, and fully conversant with the implications of price-level targeting; they also trust that policy-makers will live up to their commitment.