Whenever central bankers face more than one goal, the policy framework requires:

Question

Quizplus · Accepted Answer

When central bankers face more than one goal, it is important for them to make their priorities clear. This means that they need to communicate clearly with the public about what they are trying to achieve and how they plan to achieve it. This can help to build credibility and ensure that market participants understand the central bank's objectives. While economic growth and inflation are often the most important goals for central bankers, they may also need to consider other factors, such as financial stability or employment, depending on the circumstances. Therefore, it is important for central bankers to prioritize their goals and communicate them effectively to the public.

Whenever Central Bankers Face More Than One Goal, the Policy