All of the following are ways to enhance central bank credibility except to:
A)announce inflation targets.
B)appoint inflation hawks as central bankers.
C)put no obligation on the central bank to finance the national deficit.
D)make central bank actions subject to frequent review and veto by the executive and legislative branches of government.

Question

Quizplus · Accepted Answer

Frequent review and veto by the executive and legislative branches can undermine central bank independence, which is crucial for maintaining credibility.

All of the Following Are Ways to Enhance Central Bank