Which of the following is an advantage to money targeting?
A)There is an immediate signal on the achievement of the target.
B)It does not rely on a stable money-inflation relationship.
C)It implies lack of transparency.
D)It implies smaller output fluctuations.

Question

Quizplus · Accepted Answer

Money targeting provides an immediate signal on the achievement of the target because it involves setting a specific growth rate for a monetary aggregate, which can be quickly measured and assessed.

Which of the Following Is an Advantage to Money Targeting