One Reason for Having a Monetary Policy Framework Is

question 85

Multiple Choice

One reason for having a monetary policy framework is:

• A) it makes clear what specific goals the central bankers are pursuing.
• B) it provides leeway for central bankers to change their goals without communicating the change and disrupting financial markets.
• C) it provides central bankers the secrecy needed to perform their jobs effectively.
• D) it can make goal setting vague enough so that the central bankers can always claim success.

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