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Chair of the Department of Micro- and Macroeconomic Analysis of the Economics Faculty, Lomonosov Moscow State University
The more clearly businesses and households understand the central bank's policy, the closer their inflation expectations are to the target. However, it is possible for monetary policy to be excessively transparent, which can bring more harm than benefit.
Inflation targeting might support economic growth by lowering inflation and volatility. However, monetary policy alone cannot drive growth.
