The "anchor" that sustains the credibility of monetary policy is ________.
A)easily weighed during the slightest of macroeconomic storms
B)composed of some indestructible substance
C)necessary to avoid central bank independence
D)available for scrutiny to all who care to observe

Question

Quizplus · Accepted Answer

An important aspect of the anchor of monetary policy credibility is its availability for scrutiny to all who care to observe. This means that the public can assess the central bank's actions and decisions, which helps to ensure transparency, accountability, and trust in the central bank. Additionally, the anchor is not indestructible and may face challenges during macroeconomic storms, but it is still necessary to maintain central bank independence and credibility.

The "Anchor" That Sustains the Credibility of Monetary Policy Is