Which of the following statements about inflation targeting is true?

Question

Quizplus · Accepted Answer

Inflation targeting is a framework adopted by several central banks, including the Federal Reserve. One advantage of this approach is that it could help institutionalize good monetary policy over time, even as leaders change. Option A is not true, as inflation targeting can still allow for action during a severe recession. Option B is not true, as many central banks have adopted inflation targeting. Option D is also not true, as inflation targeting is practiced in Europe, including by the European Central Bank.

Which of the Following Statements About Inflation Targeting Is True