Describe the Strategy of Inflation Targeting

question 99

Essay

Describe the strategy of inflation targeting.Why have many countries begun to use this strategy instead of targeting money growth? What are the advantages and disadvantages of inflation targeting?

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Definitions:

Public Good

A service or product offered for free to every member of a society, made available by either governmental entities or private organizations without aiming for financial gain.

Economic Functions

The roles and operations performed by an economic system, such as allocation of resources, distribution of income, and stabilization of the economy.

U.S. Government

The federal government of the United States, composed of three distinct branches: legislative, executive, and judicial, as established by the Constitution.

Issues Regulations

Rules and guidelines issued by authorities to control or govern behaviors and operations in various sectors.