Inflation targeting consists of the Federal Reserve O using monetary policy to reduce the annual inflation rate by a set amount each year until the rate of inflation is negative O using monetary policy to hold the price of a fixed basket of commodities (wheat, gold) to a 5-6 percent annual rate regularly stating an explicit goal for the rate of inflation over some future period, such as 2 percent inflation over the next two years O identifying the sources of inflation and recommending structural changes in the economy that would relieve upward price pressures

Inflation targeting consists of the Federal Reserve O using monetary policy to reduce the annual inflation rate by a set amount each year until the rate of inflation is negative O using monetary policy to hold the price of a fixed basket of commodities (wheat, gold) to a 5-6 percent annual rate regularly stating an explicit goal for the rate of inflation over some future period, such as 2 percent inflation over the next two years O identifying the sources of inflation and recommending structural changes in the economy that would relieve upward price pressures

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 6CQQ

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