Benefits of a central bank announcing a specific target

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Reference no: EM133198637 , Length: Words Count:250

Assignment:

"Because the public can see whether a central bank hits its monetary targets almost immediately, whereas it takes time before the public can see whether an inflation target is achieved, monetary targeting makes central banks more accountable than inflation targeting does." Do you agree or disagree with this statement? What are the benefits of a central bank announcing a specific target?

Does this lead to better expectations that are set in the market?

Reference no: EM133198637

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