Disadvantage of inflation targeting

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Which of the following is a disadvantage of inflation targeting?

A. Inflation targeting is less transparent than monetary targeting.

B. It is more transparent and more readily understood by the public.

C. There is a long lag between monetary policy actions and inflation.

D. Inflation targeting leads to inreased exchange rate fluctuations.

But there is _______ evidence to support the four claimed disadvantages of inflaiton targeting.

A. no

B. little

C. conflicting

D. much

Reference no: EM13974924

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