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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 735 |
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During the late 1980s, these paradigms started to change following globalization, technological advancements and large movement of capital across national boundaries.
In view of difficulties in conducting monetary policy with explicit intermediate targets, of late, some countries are switching to direct inflation targeting, which works by explicitly announcing to the public the goals for monetary policy and the underlying framework for its implementation...
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In this framework, the monetary authorities have the freedom to deploy the instruments of monetary policy to the best of their capacities, but are limited in their discretion of policy goals. The framework is advocated on the ground that it clearly spells out the extent of central bank accountability and transparency...
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