Which of the following is not a benefit of using a nominal anchor for the conduct of monetary policy?

A.

A nominal anchor helps promote price stability by tying inflation expectations to low levels directly through its constraint on the value of money.

B.

A nominal anchor creates a rigid rule that does not allow a central bank to adjust to unforeseen circumstances.

C.

A nominal anchor can limit the time-inconsistency problem by providing an expected constraint on monetary policy.

D.

A nominal anchor provides a direct measure to see if the central bank is achieving its goal.