Moving Monetary Policy Forward: Why Small Steps – and a Lower Inflation Target – Make Sense for the Bank of Canada

Summary:
Page Title:Moving Monetary Policy Forward: Why Small Steps – and a Lower Inflation Target – Make Sense for the Bank of Canada – C.D. Howe Institute
Article Title:Moving Monetary Policy Forward: Why Small Steps – and a Lower Inflation Target – Make Sense for the Bank of Canada
URL:https://cdhowe.org/publication/moving-monetary-policy-forward-why-small-steps-and-lower-inflation-target-make-sense-bank-canada/
Published Date:January 1, 2011
Accessed Date:February 13, 2025

The Bank of Canada should lower its inflation target as part of a new monetary policy agreement due at the end of 2011, according to a study released today by the C.D. Howe Institute. In Moving Monetary Policy Forward: Why Small Steps – and a Lower Inflation target – Make Sense for the Bank of Canada, leading economist Angelo Melino explains why the Bank of Canada should keep its current inflation-targeting regime in the new agreement with the Department of Finance, but make several reforms, including a lower inflation target, to achieve some important goals.

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