847 $
© 2014 Pearson Canada Inc.$
26.4 Approaches to Establishing Central Bank Credibility
Approaches to establishing central bank credibility include ____.
A) continued success at keeping inflation under control
B) central bank independence
C) appointment of a more conservative central banker
D) all of the above
Answer: D
Diff: 2 Type: MC Page Ref: 633
Skill: Recall
Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
discretion policy debates
Approaches to establishing central bank credibility include ____.
A) continued success at keeping inflation under control
B) inflation targeting
C) exchange rate targeting
D) all of the above
Answer: D
Diff: 2 Type: MC Page Ref: 633
Skill: Recall
Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
discretion policy debates
Approaches to establishing central bank credibility include ____.
A) inflation targeting
B) exchange rate targeting
C) central bank independence
D) appointment of a more conservative central banker
E) all of the above
Answer: E
Diff: 2 Type: MC Page Ref: 633
Skill: Recall
Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
discretion policy debates
The notion of hiring central bankers who are "conservative" and have a strong aversion to
inflation was introduced by ____.
A) Kenneth Galbraith
B) Ben Bernanke
C) Gerald Bouey
D) Kenneth Rogoff
Answer: A
Diff: 2 Type: MC Page Ref: 633
Skill: Recall
Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
discretion policy debates