' speeches line with the target. the third option is price - level targeting, including its various offshoots, such as nominal gdp targeting and temporary price - level targeting. in such a regime, the central bank commits to keep the price level near a steadily growing target path. like average - inflation targeting, this strategy promises to overshoot the target inflation rate in “ good ” times to make up for the inflation undershoot when policy is constrained. in theory, both average - inflation and price - level targeting can solve the problem of anchoring inflation expectations at the target rate while maintaining a low inflation target rate amid low neutral rates. although price - level targeting is a bigger leap from inflation targeting than averageinflation targeting, each can be implemented in ways that are very similar to standard inflation targeting, either in terms of forecast - targeting or a policy rule. 6 importantly, neither will likely be effective in practice unless communicated clearly and carried out consistently over time. more broadly, all of these proposed strategies face potential costs and benefits — in terms of macroeconomic performance, communication, and robustness to uncertainty — which require careful study. in considering alternative monetary policy strategies, academic experts, policymakers, and others from around the world have an important part to play, sharing and discussing ideas and comparing experiences to help all of us to think through these issues. this process of careful study and discussion proved highly valuable during the development and implementation of inflation targeting in decades past, and will be equally valuable in the present debates. thank you. 1 see federal reserve to review strategies, tools, and communication practices it uses to pursue its mandate of maximum employment and price stability, november 15, 2018. 2 shigeaki fujiwara, yuto iwasaki, ichiro muto, kenji nishizaki, and nao sudo, developments in the natural rate of interest in japan, bank of japan review 2016 - e - 12 ( october 2016 ) ; kathryn holston, thomas laubach, and john c. williams, measuring the natural rate of interest : international trends and determinants, journal of international economics, volume 108, supplement 1, pp. s59 – s75 ( may 2017 ) ; thomas laubach and john c. williams, measuring the natural rate of interest redux, business economics, volume 51, issue 2, pp. 57 – 67 ( july 2016 ) ; john c. williams, monetary policy in a low r - star world, frbsf economic letter 2016

camouflages the wrongdoing and makes it sound more acceptable to others. we see it in our daily lives — terms like “ troublemaker ” and “ not being a team player ” are often used to shift the onus from the person whose behavior is being challenged to the challenger. ann tenbrunsel ’ s work has been very important for revealing how we use language to disguise or excuse behavior we know to be unacceptable. 3 one of the other issues this example illustrates is how organizational norms affect our own sense of what ’ s right and wrong and whether to speak up. many of you here today will be familiar with the asch experiment, where students participated in a vision test. there was a control line and three other lines labelled a, b, and c. participants had to state aloud which line was the same length as the control. but they had to do so after a group of actors had given an incorrect answer. 4 about one third of participants went along with the majority, even though it was readily apparent their answers were incorrect. 5 when asked why they went along with the group they said it was because they wanted to fit in, or because they believed the group was better informed than they were. does the junior banker drop the issue in an effort to fit in? does she raise the issue in private, or does she call a company hotline? the answer depends on the complex relationship between the individual and the culture in which they work. i ’ m particularly looking forward to hearing from celia moore. she spoke at the new york fed last 2 / 4 bis central bankers'speeches year and discussed how organizations set goals and motivate people to achieve them. praise, penalties, and rewards all influence an individual ’ s behavior. signals from the organization ’ s leadership also have a major role to play : do the higher echelons of management value divergent views? do they foster a culture where people feel empowered to speak up? 6 all of these things shape how an individual will respond to an ethical dilemma, whether they will acknowledge it as such, and how they will lead others as they move up in an organization. as financial services professionals with great technical expertise, we often fall into the trap of thinking we can solve all of our problems on our own. but we have so much to learn from experts in other fields. strengths as blind spots one of the most important lessons i ’ ve learned as a ceo is that there ’ s no fixed endpoint when it comes