
Which of the following is not an argument against inflation targeting?
A) Inflation targeting reduces the flexibility of the central bank to pursue other policy goals.
B) Inflation targeting assumes that the central bank can accurately forecast future inflation rates.
C) Inflation targeting makes monetary policy ineffective because the targets are publicly announced.
D) Inflation targeting holds the central bank accountable for an inflation goal, but may make it less likely the central bank will achieve other goals.
Correct Answer:
Verified
Q101: The Reserve Bank of Australia has its
Q102: During economic contractions and recessions of 2008-2009
Q103: Explain the effect that a rise in
Q104: Inflation targeting is a framework for carrying
Q105: Which of the following is an argument
Q107: What are the main reasons for keeping
Q108: Present two arguments as to why the
Q109: What is the argument against the independence
Q110: Explain how monetary policy affects aggregate demand,
Q111: How do economists generally rate the Reserve
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents