The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

تمرين 7

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Central banks that engage in inflation targeting usually announce the inflation target and time period for which that target will be relevant. In addition, central bank officials are held accountable for their actions (e.g., they could be fired if the target is not reached), which is also public information. Explain why transparency is such a fundamental ingredient of inflation targeting.