A system in which the central bank attempts to achieve a certain rate of change in the overall price level within some period is referred to as
A)disinflation equilibrium.
B)deflation.
C)inflation targeting.
D)rational expectations trapping.

Question

Quizplus · Accepted Answer

Inflation targeting is a monetary policy framework in which a central bank sets a target rate of inflation and adjusts its monetary policy tools to achieve that target over the medium term. The central bank typically communicates its target to the public and provides regular updates on its progress toward achieving it. This system is widely used by central banks around the world, including the Reserve Bank of New Zealand, the Bank of Canada, and the Bank of England.

A System in Which the Central Bank Attempts to Achieve