Decreased transparency of the monetary policy strategy through communication with the public and the markets about the plans and objectives of monetary policymakers is an element of inflation targeting.

Question

Quizplus · Accepted Answer

Decreased transparency of monetary policy strategy goes against the principles of inflation targeting, which emphasizes clear communication and transparency about the objectives and plans of monetary policymakers to enhance the effectiveness of monetary policy.

Decreased Transparency of the Monetary Policy Strategy Through Communication with the Public