An argument against a central bank policy of announcing numerical inflation targets is that inflation targeting policies:
A)enhance central bank credibility.
B)anchor inflationary expectations.
C)emphasize inflation at the expense of output stabilization.
D)increase uncertainty.

Question

Quizplus · Accepted Answer

Inflation targeting policies can lead to a focus on controlling inflation, potentially neglecting other economic objectives like output stabilization.

An Argument Against a Central Bank Policy of Announcing Numerical