Which of the following is an advantage to inflation targeting?
A) There is a delayed signal about achievement of the target.
B) Inflation targets could impose a rigid rule on policymakers.
C) There is potential for larger output fluctuations.
D) It increases accountability of the central bank.

Question

Quizplus · Accepted Answer

Inflation targeting increases accountability of the central bank. The other options are disadvantages of inflation targeting.

Which of the Following Is an Advantage to Inflation Targeting