3/5  equilibrium, with the risk of entailing inflation (overshooting) or deflation (undershooting) being preempted.6 Dynamic price stability target policy and the timeless perspective policy The dynamic price stability target policy is "strategically coherent" (to borrow a phrase from Professor Bennett McCallum [2005]) to attain final price stability, but it is not a "timeless perspective policy" that puts emphasis on the time consistency of monetary policy.7 The price level target policy recommends achieving the prescribed path of price levels with a constant rate of inflation, regardless of the initial conditions.
For instance, in jurisdictions where the set of assets eligible for central bank operations is broader than the one qualifying for the fulfilment of the liquidity standards, one may witness an increased reliance on central bank refinancing using less liquid assets as collateral.