Whenever central bankers face more than one goal, the policy framework requires:

Question

Quizplus · Accepted Answer

When central bankers face multiple goals, it is important for them to make their priorities clear. This helps to guide their decision-making process and ensure that their actions are consistent with their desired outcomes. While inflation and economic growth are often two key goals for central bankers, the relative importance of each may vary depending on the current economic situation. Therefore, prioritizing goals helps central bankers to effectively balance their objectives and achieve their desired outcomes.

Whenever Central Bankers Face More Than One Goal, the Policy