Economic policy objectives

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Question 11

A central bank is mandated to target an annual inflation rate of 2.0%. The government's mandate specifies that if inflation rises to 3.0%, the central bank governor must write a formal public letter of explanation and implement contractionary policy. However, if inflation falls to 1.0%, no such formal explanation or mandatory intervention is required.

This policy framework is an example of:

An asymmetric inflation target

A symmetric inflation target

The indexation of monetary policy instruments

A conflict between macroeconomic policy objectives

Economic policy objectives

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Question 11

A central bank is mandated to target an annual inflation rate of 2.0%. The government's mandate specifies that if inflation rises to 3.0%, the central bank governor must write a formal public letter of explanation and implement contractionary policy. However, if inflation falls to 1.0%, no such formal explanation or mandatory intervention is required.

This policy framework is an example of:

An asymmetric inflation target

A symmetric inflation target

The indexation of monetary policy instruments

A conflict between macroeconomic policy objectives

Economic policy objectives

Question 11

Economic policy objectives Questions

Economic policy objectives

Question 11

Economic policy objectives Questions