Canadian Monetary Policy 1989-1993: What Were the Bank of Canada's True Actions in the Determination of Monetary Conditions?
AbstractDuring its recent battle against inflation from 1988 to the present, the Bank of Canada has been accused of all the evils that plagued the Canadian economy: high dollar and interest rates, recession, and slow recovery. The purpose of this paper is to analyse the action taken by the Bank during the period from 1989 to 1993 in order to characterize precisely the way monetary policy was conducted during this period. We find that, contrary to what analysts have usually stated, monetary policy actions were far from tight in 1989. However, from 1990 on, the Bank took a series of restrictive actions in order to discipline financial markets giving an undue importance to its objective of orderly markets to the detriment of monetary expansion.
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Bibliographic InfoArticle provided by University of Toronto Press in its journal Canadian Public Policy.
Volume (Year): 20 (1994)
Issue (Month): 4 (December)
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Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
Web page: http://economics.ca/cpp/
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pierre Duguay & Stephen Poloz, 1994. "The Role of Economic Projections in Canadian Monetary Policy Formulation," Canadian Public Policy, University of Toronto Press, vol. 20(2), pages 189-199, June.
- Caramazza, Francesco & Hostland, Doug & Poloz, Stephen, 1990. "The demand for money and the monetary policy process in Canada," Journal of Policy Modeling, Elsevier, vol. 12(2), pages 387-426.
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Journal of International Money and Finance,
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- Guy Debelle, 1996. "The Ends of Three Small Inflations: Australia, New Zealand and Canada," Canadian Public Policy, University of Toronto Press, vol. 22(1), pages 56-78, March.
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