Which of the following would reduce the political incentive to change interest rates in the economy?

Question

Quizplus · Accepted Answer

Providing central banks with an inflation target reduces the political incentive to change interest rates because it focuses the central bank's policy on achieving a specific, measurable goal. This autonomy and clear objective can help insulate monetary policy decisions from political pressures, as decisions are made to achieve the inflation target rather than for political reasons.

Which of the Following Would Reduce the Political Incentive to Change