In inflation targeting forecasts of inflation play an


In inflation targeting, forecasts of inflation play an essential role. Since monetary policy affects inflation with a lag, policymakers must make decisions today to change inflation one or two years in the future, so policy is based not on the inflation rate today but on the forecast for future inflation.

Please assist with response to discussion comment?

Solution Preview :

Prepared by a verified Expert
Business Economics: In inflation targeting forecasts of inflation play an
Reference No:- TGS02698153

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)