One advantage of inflation targeting is that the central bank's policy can be evaluated by seeing how close to the target actual inflation rates are.

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Inflation targeting is a monetary policy framework where the central bank sets a specific inflation target and uses its policy tools to achieve it. One of the advantages of this approach is that it provides a clear benchmark for evaluating the central bank's performance. If actual inflation rates are close to the target, it suggests that the central bank's policies are effective. If they are consistently above or below the target, it may signal that adjustments in policy are needed. Therefore, the statement is true.

One Advantage of Inflation Targeting Is That the Central Bank's