When the central bank announces the inflation rate that it will achieve over the next one to four years,it is following a strategy known as

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The strategy being followed by the central bank where it announces the inflation rate it intends to achieve over the next one to four years is known as inflation targeting. This approach aims to maintain price stability by setting a specific inflation target and adjusting monetary policy to achieve that target. It is used by many central banks around the world, including the Federal Reserve in the United States, the European Central Bank, and the Bank of Japan.

When the Central Bank Announces the Inflation Rate That It