Which of the following characteristics of a central bank is expected to enhance monetary policy credibility?

Question

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Announcing a numerical inflation target enhances the central bank's transparency and accountability in fulfilling its mandate to maintain price stability, which in turn increases the public's and financial markets' confidence in the central bank's ability to achieve its policy objectives. Short terms that coincide with the legislature (A) and being under the obligation to finance the national deficit (D) may lead to political interference and compromise the central bank's independence and credibility. Daily central bank actions subject to review and veto by the executive branch (B) also undermine its independence and ability to implement monetary policy in a timely and effective manner.

Which of the Following Characteristics of a Central Bank Is