Forward guidance and TAP led to inflation in 2008.

Name: Forward guidance and TAP led to inflation in 2008.
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Question

Quizplus · Accepted Answer

Forward guidance and TAP (Tapering) are monetary policy tools used by central banks to influence the economy, primarily used after the 2008 financial crisis, not causes of inflation in 2008. The 2008 inflation was more directly related to high commodity prices and preceding economic conditions.

Forward Guidance and TAP Led to Inflation in 2008