Inflation targeting most commonly consists of
A) a 6 month goal of 6% inflation in consumer prices
B) a 9 month goal of 4% inflation in consumer prices
C) a 1 to 2 year goal of 2% to 3% inflation in consumer prices
D) a 1 to 2 year goal of zero inflation, plus-or-minus 1%, in producer prices
E) a 5 year goal of 3% to 5% inflation in producer prices

Question

Quizplus · Accepted Answer

Inflation targeting typically involves setting a medium-term goal for inflation, usually over a period of 1 to 2 years, rather than a short-term goal. The target inflation rate is usually in the range of 2% to 3% for consumer prices.

Inflation Targeting Most Commonly Consists of