The Roads Not Taken: Why the Bank of Canada Stayed With Inflation Targeting
AbstractSticking 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.
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Bibliographic InfoPaper provided by C.D. Howe Institute in its series e-briefs with number 125.
Length: 4 pages
Date of creation: Nov 2011
Date of revision:
Publication status: Published on the C.D. Howe Institute website, November 2011
Monetary Policy; Canada; Bank of Canada; inflation targeting;
Find related papers by JEL classification:
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-03 (All new papers)
- NEP-CBA-2012-01-03 (Central Banking)
- NEP-MAC-2012-01-03 (Macroeconomics)
- NEP-MON-2012-01-03 (Monetary Economics)
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.:
- Michael Parkin, 2009. "What is the Ideal Monetary Policy Regime? Improving the Bank of Canada's Inflation-targeting Program," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 279, January.
- Julian A. Parra-Polania & Luisa F. Acuña-Roa, 2013.
"Price-Level Targeting: an omelette that requires breaking some Inflation-Targeting eggs?,"
BORRADORES DE ECONOMIA
010984, BANCO DE LA REPÚBLICA.
- Luisa F. Acuña Roa & Julian A. Parra Polania, 2013. "Price-Level Targeting: an omelette that requires breaking some Inflation-Targeting eggs?," Borradores de Economia 783, Banco de la Republica de Colombia.
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