Which of the following is not a disadvantage of of the Fed's "just do it" approach to monetary policy?
A)There is low transparency of policy.
B)There is low accountability for central bankers.
C)This type of policy make the Fed more susceptible to the time-inconsistency problem.
D)It relies on a stable money-inflation relationship.

Question

Quizplus · Accepted Answer

The stable money-inflation relationship is actually an advantage of the "just do it" approach to monetary policy. The other options are all disadvantages, with low transparency and accountability leading to reduced public trust and the time-inconsistency problem leading to unpredictable policy outcomes.

Which of the Following Is Not a Disadvantage of Of the Fed's