Price‐Level Targeting and Stabilization Policy
构建动态随机一般均衡模型研究最优货币政策，发现价格水平目标能控制通胀预期、稳定短期冲击并提高福利，通过平滑名义利率实现跨状态消费平滑。
We construct a dynamic stochastic general equilibrium model to study optimal monetary stabilization policy. Prices are fully flexible and money is essential for trade. Our main result is that if the central bank pursues a price‐level target, it can control inflation expectations and improve welfare by stabilizing short‐run shocks to the economy. The optimal policy involves smoothing nominal interest rates that effectively smooths consumption across states.