(a)[2]
- In which year did Turkey meet its inflation target most successfully? [1]
- In which year did Turkey meet its inflation target least successfully? [1]
(b)[4]
Explain the likely impact of the depreciation of the New Turkish Lira on Turkey’s rate of inflation.
(c)[4]
With reference to Fig. 1, how could the differences between the inflation targets and actual inflation rates in Chile and Brazil in 2008 be accounted for?
(d)[4]
How could setting an inflation target influence the causes of inflation?
(e)[6]
Discuss the possible difficulties involved in constructing an accurate consumer price index.