What is a monetary policy inflation target

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What is a monetary policy inflation target, and what is the specific target for Australia used by the Reserve Bank of Australia? Discuss one advantage and one disadvantage of inflation targeting, and briefly provide for an example for each.

Assume Artica's current inflation rate is 6% and the unemployment rate is 2%. Artica has an inflation target of 3%, and the central bank of Artica decides to bring inflation down to meet the target. What is likely to happen to the unemployment rate? Justify your answer.

The following statement is false. Correct and justify your response.

The monetary policy transmission process (and effect) is quick, but the initial decision to change

Reference no: EM132461361

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