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) It is easily understood by the public.

Question

Quizplus · Accepted Answer

Inflation targeting is easily understood by the public, as it is a simple and transparent policy framework. This helps to align expectations and build confidence in the central bank's ability to maintain price stability.

Which of the Following Is an Advantage to Inflation Targeting