Maintaining the growth of the money supply at a constant rate is an example of a

Question

Quizplus · Accepted Answer

Maintaining the growth of the money supply at a constant rate is an example of a money targeting rule, where the central bank sets a target for the growth rate of the money supply and adjusts monetary policy to achieve that target. Discretionary policy refers to the use of judgment and discretion by policymakers in making decisions, while a money demand rule would focus on adjusting monetary policy based on changes in the demand for money. Inflation targeting aims to keep inflation within a specific range, while the gold standard is a monetary system where currency is backed by gold reserves.

Maintaining the Growth of the Money Supply at a Constant