Announced numerical inflation targets are advocated for all of the following reasons EXCEPT that inflation targets:

Question

Quizplus · Accepted Answer

The elimination of the tradeoff between maintaining output or inflation in the event of adverse inflationary shocks is not a reason for advocating announced numerical inflation targets. The other options - reducing inflation uncertainty, anchoring inflationary expectations, and enhancing central bank credibility - are all potential benefits of such targets.

Announced Numerical Inflation Targets Are Advocated for All of the Following