Which purpose is NOT associated with inflation targeting?

Inflation targeting primarily serves several key purposes in monetary policy, and the aim to hinder economic growth is not among them. Instead, inflation targeting is designed to maintain price stability, which is essential for fostering a conducive environment for sustainable economic growth.

One of the main goals of inflation targeting is to enhance transparency in economic policy, allowing both the public and markets to understand the objectives and strategies of policymakers. This clarity helps increase accountability, as stakeholders can assess how effectively the authorities achieve their inflation targets.

Furthermore, when central banks adopt inflation targeting, it often leads to improved credibility. This credibility is crucial because it helps anchor inflation expectations, making it easier for the central bank to manage actual inflation rates without needing aggressive interventions.

In contrast, hindering economic growth runs counter to the overall objectives of inflation targeting, which is to maintain stability in prices while supporting a healthy economic trajectory. This approach is commonly recognized as a more effective strategy for promoting long-term growth and stability in the economy.