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In all eight jurisdictions, the coefficient on the lagged level (δ) is numerically quite large, and especially so in the case of the euro area. None, though, are statistically significant at conventional levels. The tests are, however, likely to be of low power on such short samples. In order to increase the power of the test, the final row of the Table therefore shows the result when of a pooled regression, with the coefficient δ constrained to be the same across countries (the other coefficients are allowed to differ); the euro area is omitted from this regression in order to create a balanced panel. Unsurprisingly, the coefficient δ is close to its average across the individual country regressions. But the appropriately adjusted test statistic (see Levin, Lin and Chu, 2002) on δ is now highly statistically significant, strongly suggesting that collectively the price-level series are trend-, rather than difference-, stationary. There are a number of possible explanations for this apparent trend stationarity of the price level during the inflation-targeting period. First, it may be just an artefact of the particularly  9  I am grateful to Lars Svensson for drawing my attention to this fact. 10  To cater for drift insofar as prices have not, on average, risen at the supposed target rate. BIS Review 111/2010  15  benign environment obtaining for much of the sample period. More data from less benign times may overturn this result, so it will be worth revisiting in the future.