Which of the following is not an element of inflation targeting?
A) A public announcement of medium-term numerical targets for inflation
B) An institutional commitment to price stability as the primary long-run goal
C) An information-inclusive approach in which only monetary aggregates are used in making decisions about monetary policy
D) Increased accountability of the central bank for attaining its inflation objectives

Question

Quizplus · Accepted Answer

Inflation targeting does not rely solely on monetary aggregates in making decisions about monetary policy. It considers a wide range of information, including economic growth, employment, and financial stability. Therefore, choice C is not an element of inflation targeting.

Which of the Following Is Not an Element of Inflation