Central banks that engage in inflation targeting usually announce the inflation target and time period for which that target will be relevant. In addition, central bank officials are held accountable for their actions (e. g., they could be fired if the target is not reached), which is also public information. Why is transparency such a fundamental ingredient of inflation targeting? a. It provides an extra incentive for central banks to attain their goals and makes their policy more credible.
b. It forces central banks to concentrate on official policy procedures that are publicly known.
c. It simplifies the policy procedures of inflation targeting.
d. It guarantees central banks' credibility and policy effectiveness.