Mission Creep and Monetary Policy

Summary:
Page Title:Mission Creep and Monetary Policy – C.D. Howe Institute
Article Title:Mission Creep and Monetary Policy
URL:https://cdhowe.org/publication/mission-creep-and-monetary-policy/
Published Date:June 22, 2021
Accessed Date:February 13, 2025

Bank of Canada Should Beware "Mission Creep"

  • When the Bank of Canada and the Government of Canada renew their inflation targeting agreement later this year, they should disregard proposals to expand the mandate of monetary policy beyond its central goal of achieving and preserving price stability.
  • These proposals include suggestions that monetary policy promote a greener economy, give greater emphasis to full employment, tackle income inequality, restrain the price of housing and accept greater responsibility for safeguarding financial stability.
  • While these are all good and worthy goals, Murray argues that this sort of mission creep risks undercutting monetary policy’s ability to fulfill its primary responsibility and is neither necessary nor helpful to the attainment of these additional challenges.

Membership Application

Interested in becoming a Member of the C.D. Howe Institute? Please fill out the application form below and our team will be in touch with next steps. Note that Membership is subject to approval.

"*" indicates required fields

Please include a brief description, including why you’d like to become a Member.

Member Login

Not a Member yet? Visit our Membership page to learn more and apply.