What monetary policy philosophy is against tying the hands of the central bank?
A) rules
B) discretion
C) prudence
D) inclination

Question

Quizplus · Accepted Answer

Discretion is the monetary policy philosophy that is against tying the hands of the central bank. Discretionary policy allows the central bank to react to changing economic conditions and adjust policy as necessary without being bound by specific rules or targets. This approach is often favored by central bankers who believe that monetary policy should be flexible and adaptable.

What Monetary Policy Philosophy Is Against Tying the Hands of the Central