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The central bank of Brazil has lowered its inflation target in recent years from 4.5% in 2018 to 3% in 2024. If credible (believed by
The central bank of Brazil has lowered its inflation target in recent years from 4.5% in 2018 to 3% in 2024. If credible (believed by workers and firms), what is the consequence out of the options below? Correct! The central bank will have less ability to cut interest rates in future recessions. The ability to cut interest rates will be unaffected. The central bank will have more ability to raise interest rates in future recessions. The central bank will have more ability to cut interest rates in future recessions
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