One advantage of inflation targeting over the Taylor rule is that the central bank's policy can be evaluated by seeing how close to the target actual inflation rates are.

Question

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Inflation targeting specifically sets a target for inflation, which allows for easier evaluation of the effectiveness of the central bank's policy. In comparison, the Taylor rule sets a target for interest rates based on inflation rates, but does not provide as clear of a target for inflation itself.

One Advantage of Inflation Targeting Over the Taylor Rule Is