Price-level targeting is a monetary policy strategy which, rather than looking at annual developments in the inflation rate, instead bases its analysis on long-term developments in price levels. When targeting price levels, monetary policymakers use corrective measures to respond to any deviations from the target path for the price level. For instance, if, in a certain year, the inflation rate rises at a faster pace than envisaged, monetary policymakers try to offset this overshooting in the following period through undershooting so as to ensure a return to the long-term target path for the price level. By contrast, the Eurosystem focuses on a target for the medium-term inflation rate. As long as this is within the bounds of the Eurosystem’s target figure for price stability, the target has been achieved. There are no attempts to correct targets missed in previous years in the years thereafter and thus no changes to the target rate of inflation. To date, price-level targeting has only been practised in Sweden in the 1930s.