February/March 2026 Paper 42

2026 · 5 questions · 9 parts · 60 marks

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4Monetary PolicyHard20 marks
The Bank of China has a target inflation rate of around 3%, the Bank of India has a target inflation rate of 4% and the Federal Reserve, the European Central Bank and the Bank of England all have a 2% target inflation rate.
Consider whether central banks should have a target inflation rate of 0%.

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