Which of the following is an advantage to inflation targeting?
A) There is a delayed signal about achievement of the target.
B) Inflation targets could impose a rigid rule on policymakers.
C) There is potential for larger output fluctuations.
D) There is transparency.

Question

Quizplus · Accepted Answer

Inflation targeting promotes transparency as the central bank is held accountable for meeting targets and publicly communicates its policies and actions.

Which of the Following Is an Advantage to Inflation Targeting