Money supply targeting
A) performs poorly.
B) is used by most monetary authorities today.
C) will result in a high rate of inflation.
D) is very successful in maintaining price stability.
E) is superior to nominal interest rate targeting in maintaining price stability.

Question

Quizplus · Accepted Answer

Money supply targeting is known to have performed poorly in controlling inflation and maintaining price stability. Many central banks today have shifted away from this approach towards other tools such as interest rate targeting.

Money Supply Targeting