Inflation targeting
A) explicitly considers the long-run goal of price stability for monetary policy.
B) states that the long-run goal of monetary policy is an output target.
C) explicitly considers the short-run goal of price stability for monetary policy.
D) puts equal weight on price stability and on an output target for monetary policy.

Question

Quizplus · Accepted Answer

Inflation targeting explicitly considers the long-run goal of price stability for monetary policy, meaning that the central bank aims to keep inflation low and stable over time. It does not prioritize an output or short-run goal.

Inflation Targeting