What Is Inflation Targeting? Is It Possible for a Central

question 34

Essay

What is inflation targeting? Is it possible for a central bank that adopts inflation targeting to also pursue output stabilisation?

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Definitions:

Ethical Reason

A justification for an action or decision based on moral principles and values.

Equitable Remedy

A court-ordered action that requires a party to take specific steps to correct a wrong, including injunctions and specific performance, distinguished from financial compensation.

Specific Performance

A contract remedy whereby the defendant is ordered to perform according to the terms of his contract.

Monetary Damages

Financial compensation awarded in civil lawsuits for loss or injury as a result of the defendant's actions.