Economy, asked by Debasish6153, 1 year ago

What is inflation targeting? what are the advantages and disadvantages of inflation targeting?

Answers

Answered by AnuragPatel
2
The fact that not all central banks that state price stability among their goals of monetary policy have chosen an inflation targetingframework is indicative of the fact that it is not clear whether thebenefits of inflation targeting exceed its costs

Advantages

1. Balancing Predictability and Expectations

2. Preventing Bubbles and Fuelling Sustainable Growth

3. Preventing Economic Collapse

Disadvantages

1. Unrealistic in Nature

2. Against development

3.Side effects

I hope it helps you
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