What is the main difference between the stated goals of the People's Bank of China (PBC) and the Federal Reserve Bank of the United States (the Fed).

Question

Quizplus · Accepted Answer

The Answer is For the Federal Reserve the main targets to control are output, unemployment, and inflation. For the PBC, though the wording has a certain ambiguity, the exchange rate appears to be a target along with output and inflation. China's exchange rate is not floating, so as we discuss in the chapter, monetary policy needs to be consistent with a quasi-fixed exchange rate. Controlling inflation is a necessary but not sufficient condition for controlling the exchange rate.

What Is the Main Difference Between the Stated Goals of the People's