Which of the following characteristics of a central bank is expected to enhance monetary policy credibility?
A)The central bankers'short terms that coincide with the terms of the legislature
B)Daily central bank actions that are subject to the review and veto of the executive branch of the government
C)The central bank announcing a numerical inflation target
D)The central bank's obligation to finance the national deficit

Question

Quizplus · Accepted Answer

Announcing a numerical inflation target enhances transparency and accountability, which can build public trust and credibility in the central bank's commitment to maintaining price stability.

Which of the Following Characteristics of a Central Bank Is