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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

How does a monetary policy of inflation target work?

To determine

To state: The working of monetary policy of inflation targeting.

Explanation

Inflation targeting is a monetary policy wherein the central bank targets to keepinflation within a low target range. The central bank basically decides the medium term’s target inflation rate and shares the same with public. The policy is based on the assumption that the primary objective of the monetary po...

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