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Author Question: Which of the following reduces the effectiveness of inflation targeting as a means of reducing ... (Read 30 times)

itsmyluck

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Which of the following reduces the effectiveness of inflation targeting as a means of reducing cyclical fluctuations in the economy?
◦ Goodhart's Law, as applied to inflation targets, breaks down.
◦ Oil prices become more stable.
◦ People increasingly believe that the rate of inflation affects the level of real output.
◦ The trade-off between inflation and unemployment (and output) virtually disappears.


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Marked as best answer by itsmyluck on May 25, 2020

aruss1303

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itsmyluck

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Reply 2 on: May 25, 2020
:D TYSM


dawsa925

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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