Which of the following is an advantage to monetary targeting?
A) There is an immediate signal on the achievement of the target.
B) It does not rely on a stable money-inflation relationship.
C) It implies lack of transparency.
D) It implies smaller output fluctuations.

Question

Quizplus · Accepted Answer

Monetary targeting provides an immediate signal on the achievement of the target because it focuses on controlling the growth rate of a monetary aggregate, which can be observed and adjusted relatively quickly.

Which of the Following Is an Advantage to Monetary Targeting