What is the most serious criticism of anti-inflationary monetary policy?
A)Monetary policy is probably ineffective in fighting inflation.
B)Overemphasis on controlling inflation comes at the expense of the equally valid goals of low unemployment and economic growth.
C)Maintaining internal price stability means losing control of the exchange rate.
D)It leads to interest rates being far too low.

Question

Quizplus · Accepted Answer

The most serious criticism of anti-inflationary monetary policy is that overemphasis on controlling inflation comes at the expense of the equally valid goals of low unemployment and economic growth. This is because the policies used to combat inflation, such as increasing interest rates and reducing government spending, can reduce economic activity and result in higher unemployment. This trade-off between inflation and unemployment is known as the Phillips Curve, and critics argue that policymakers should not focus solely on controlling inflation at the expense of other important economic objectives.

What Is the Most Serious Criticism of Anti-Inflationary Monetary Policy