What methods have inflation-targeting central banks used to increase communication with the public and to increase the transparency of monetary policymaking?

Short Answer

Expert verified

Inflation Reports, public speeches, distribution of brochures, etc.

Step by step solution

01

Concept Introduction

Monetary policy is the macroeconomic policy employed by the central bank. It entails changes in the money supply and interest rates in order to achieve macroeconomic goals such as inflation, output growth, and employment.

02

Explanation

Inflation targeting involves the central bank determining the rate of inflation and then communicating that rate to the public. Inflation-targeting monetary policy emphasizes transparency in policy making and regular communication with the public.

Distribution of brochures, the publication inflation reports, public speeches, and continuous communication with the elected government are some of the methods used by the inflation targeting central banks for increasing transparency.

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