Jean Boivin, a deputy governor at the Bank of Canada, on Tuesday said the success of a price level-targeting regime would crucially depend on the speed with which the public adjusts its expectations of future levels of inflation.

At the Canadian Association for Business Economics in Kingston, Ontario, Boivin said: “Research has shown that targeting the price level instead of the rate of inflation could help better stabilise the economy.”

Boivin said that unlike the present inflation-targeting