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(I) Inflation targeting: Inflation targeting is a monetary policy strategy used by central banks to

achieve and maintain a target rate of inflation. The central bank uses various tools, such as

setting interest rates and adjusting the money supply, to influence the economy and achieve the

target inflation rate. The goal is to stabilize prices, promote economic growth, and maintain a

stable currency.

(II) Expectation: Expectation refers to the belief or prediction about what will happen in the

future. It can be based on past experience, knowledge, or other factors. Expectations can play a

significant role in economic decision making, as people and businesses often base their actions

on what they expect to happen in the future.

(III) Credibility: Credibility refers to the trust and confidence that people have in a particular

institution, person, or statement. In the context of economic policy, credibility refers to the belief

that a central bank or government will follow through on their stated policies and goals. A

central bank with a high level of credibility is more likely to be successful in achieving its

monetary policy goals, as people and businesses will have confidence in the bank's ability to

control inflation and stabilize the economy.