Inflation targeting refers to conducting ________ policy so as to commit the central bank to achieving a ________.
A)fiscal; publicly announced level of inflation
B)fiscal; zero inflation rate
C)monetary; publicly announced level of inflation
D)monetary; zero inflation rate

Question

Quizplus · Accepted Answer

Inflation targeting refers to conducting monetary policy (not fiscal) so as to commit the central bank to achieving a publicly announced level of inflation (not necessarily zero inflation rate).

Inflation Targeting Refers to Conducting ________ Policy So as to Commit