Inflation Targeting Is a Framework for Carrying Out Monetary Policy

question 88

Multiple Choice

Inflation targeting is a framework for carrying out monetary policy whereby the central bank:

• A)adopts a rigid target for inflation and ignores declines in output.
• B)commits to achieving a publicly announced level of inflation.
• C)commits to achieving a target level of inflation which is never announced publicly.
• D)commits to a monetary growth rule.

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