In recent years, calls for monetary rules by the Federal Reserve have been replaced with calls for:
A) A reduction in coordination failures
B) Using an equation of exchange
C) Price-level surprises
D) Inflation targeting

Question

Quizplus · Accepted Answer

In recent years, calls for monetary rules have been replaced with calls for inflation targeting, where the Federal Reserve sets a specific target for inflation and adjusts policy accordingly. This approach is seen as more flexible and adaptable to changing economic conditions compared to strict rule-following.

In Recent Years, Calls for Monetary Rules by the Federal