Question

There is a strong consensus among economists that monetary policy is more effective when it is formulated in secrecy without the reasoning behind it being revealed for many years. by a committee rather than an individual. with strong political pressure. with multiple and highly rigid objectives that may conflict from time to time in a manner that keeps financial markets guessing.

Answer 1

Explanation: The assertion made does not support the prevailing view among economists. According to the assertion, monetary policy is more effective when it is created in secret by a committee without being explained for many years. It's vital to remember, nevertheless, that accountability and transparency are usually seen as crucial values in contemporary monetary policy.The significance of good communication, transparency, and accountability in the creation and application of monetary policy is frequently emphasized by economists. Clear justifications for policy choices, along with a degree of predictability and consistency, assist direct market expectations and encourage efficient policy transmission.