Consider the following statements regarding Inflation Targeting:
1. It is a central banking policy that revolves around adjusting monetary policy to achieve a specified annual rate of inflation.
2. The principle of inflation targeting is based on the belief that long-term economic growth is best achieved by maintaining price stability, and price stability is achieved by controlling inflation.
Which of the statements given above is/are correct?
1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2
5
Question Not Attempted