The type of monetary policy regime that the Federal Reserve has followed From the 1980s up until the time Ben Bernanke became chair of the Federal Reserve in 2006 can best be described as
A)monetary targeting.
B)inflation targeting.
C)policy with an implicit nominal anchor.
D)exchange-rate targeting.

Question

Quizplus · Accepted Answer

During this period, the Federal Reserve did not explicitly target a specific monetary aggregate or inflation rate, but instead used interest rate targeting as a means to achieve their policy goals while implicitly anchoring inflation expectations through communication and credibility-building. This is known as policy with an implicit nominal anchor.

The Type of Monetary Policy Regime That the Federal Reserve