The Bank therefore concluded that the benefits of a lower inflation target were insufficient to justify the increased risk of being constrained by the ZLB. Should we move to price-level targeting? The second question we addressed was whether there would be net benefits to adopting price-level targeting (PLT).
It is a great pleasure for me to join America’s Community Bankers for your winter conference. I would like to take the opportunity today to talk with you about some of the structural changes in the economy and financial markets that are challenging both bankers and policymakers.