Successful monetary policy relies most on:

Question

Quizplus · Accepted Answer

The institutional environment is the most critical factor in successful monetary policy. It determines the independent decision-making power of the central bank and sets the legal boundaries within which the monetary policy operates. The institutional environment also ensures accountability and transparency, which are crucial for sustaining the credibility of monetary policy. Highly qualified personnel, luck, and knowledgeable citizens are important, but they are not sufficient for successful monetary policy unless the institutional environment is supportive.

Successful Monetary Policy Relies Most On