The Roads Not Taken: Why the Bank of Canada Stayed With Inflation Targeting

Christopher Ragan
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Christopher Ragan: McGill University

No 125, e-briefs from C.D. Howe Institute

Abstract: Sticking with the status quo was only one option under debate among monetary experts in the lead-up to renewal of the Bank of Canada’s inflation-targeting mandate, which was announced this week. Several other routes were available. Two of them – namely, targeting nominal GDP or targeting full employment – were arguably non-starters. Two other approaches, however, held more promise: (i) moving to a price-level targeting regime, or (ii) sticking with inflation targeting but with a lower, say 1 percent, target. Nevertheless, the renewal of the status quo keeps in place a coherent monetary policy regime that has served Canadians well.

Keywords: Monetary Policy; Canada; Bank of Canada; inflation targeting (search for similar items in EconPapers)
JEL-codes: E4 E52 E58 (search for similar items in EconPapers)
Pages: 4 pages
Date: 2011-11
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published on the C.D. Howe Institute website, November 2011

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Persistent link: https://EconPapers.repec.org/RePEc:cdh:ebrief:125

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