Bullard and Price Level Targeting

Jim Bullard (St. Louis Fed President) gave a talk yesterday which has some interesting ideas in it. In the second chart in this post, you can see that the pce deflator, which is the Fed's favorite measure of the price level, is currently very close to a 2% growth path starting in 2007. Bullard's slides show that this is the case even if our base year is as far in the past as 1995. Thus, while the...