All of the following are ways to enhance central bank credibility EXCEPT to:

Question

Quizplus · Accepted Answer

Making central bank actions subject to frequent review and veto by the executive and legislative branches of government would actually undermine central bank credibility as it would introduce political interference and undermine the perception of central bank independence. The other options (announcing inflation targets, appointing inflation hawks as central bankers, and putting no obligation on the central bank to finance the national deficit) are all ways to enhance central bank credibility.

All of the Following Are Ways to Enhance Central Bank