Inflation targeting has typically been accompanied by lower inflation.

Question

Quizplus · Accepted Answer

In countries where inflation targeting has been implemented, there has been a significant decrease in inflation rates. This is because inflation targeting involves setting a specific inflation target and using monetary policy tools to achieve that target, which helps to anchor inflation expectations and control inflationary pressures in the economy. However, there may be other factors that influence inflation rates, such as external shocks or supply-side factors, which can make it difficult to fully control inflation through monetary policy alone.

Inflation Targeting Has Typically Been Accompanied by Lower Inflation