The two principal criticisms of the state-centered approach to monetary politics are
A) it is more prescriptive than explanatory and it does not answer what incentives for currency strength exist for the people who run independent central banks.
B) it is more explanatory than prescriptive and it does not answer what incentives for price stability exist for the people who run independent central banks.
C) it is more prescriptive than explanatory and it does not answer what biases against labor exist for the people who run independent central banks.
D) it is more prescriptive than explanatory and it does not answer what incentives for price stability exist for the people who run independent central banks.
E) it is more prescriptive than explanatory and it does not answer what biases for capital savers exist for the people who run independent central banks.

Question

Quizplus · Accepted Answer

The state-centered approach is criticized for being more prescriptive than explanatory, as it is focused on providing recommendations for monetary policy rather than explaining the motivations behind central bank actions. Additionally, it does not fully address the question of what incentives exist for central bank officials to pursue price stability. Option D accurately reflects both criticisms.

The Two Principal Criticisms of the State-Centered Approach to Monetary