A central feature of monetary policy strategies in all countries is the use of a nominal variable that monetary policymakers use as an intermediate target to achieve an ultimate goal such as price stability. Such a variable is called a nominal
A)anchor.
B)benchmark.
C)tether.
D)guideline.

Question

Quizplus · Accepted Answer

The use of a nominal anchor is a central feature of monetary policy strategies in all countries. A nominal anchor is a nominal variable that monetary policymakers use as an intermediate target to achieve an ultimate goal such as price stability. The use of a nominal anchor helps to anchor inflation expectations and guide monetary policy decisions.

A Central Feature of Monetary Policy Strategies in All Countries