Bernanke: Temporary price-level targeting: An alternative framework for monetary policy

Low nominal interest rates, low inflation, and slow economic growth pose challenges to central bankers. In particular, with estimates of the long-run equilibrium level of the real interest rate quite low, the next recession may occur at a time when the Fed has little room to cut short-term rates. As...

Bernanke: Temporary price-level targeting: An alternative framework for monetary policy