Answered

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Q2. Inflation targeting is the main objective of Indian monetary policy. Do you think for a developing
country, we should stick to this
objective?
[10 marks]

Sagot :

GinnyAnswer

Final answer:

Inflation targeting is an economic policy where central banks set a target for inflation. Developing countries can benefit from sticking to this objective as it has shown to improve macroeconomic performance.


Explanation:

Inflation targeting is an economic policy where a central bank sets a target for inflation and adjusts monetary policy to achieve it. Countries like Australia, Brazil, Canada, and New Zealand have adopted inflation targeting with success. For developing countries, inflation targeting has been found to improve macroeconomic performance by lowering inflation and increasing stability.


Learn more about Inflation targeting here:

https://brainly.com/question/33034912


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