Which of the following is an advantage to monetary targeting?
A) There is almost immediate accountability.
B) It does not rely on a stable money-inflation relationship.
C) It implies lack of transparency.
D) It implies smaller output fluctuations.

Question

Quizplus · Accepted Answer

Monetary targeting allows for immediate accountability because the effects of monetary policy adjustments on the target variables (such as the money supply) can be observed relatively quickly. This makes it easier to assess the effectiveness of policy actions in real-time.

Which of the Following Is an Advantage to Monetary Targeting