Precision Targeting: The Economics – and Politics – of Improving Canada’s Inflation-Targeting Framework

Cutting the inflation target to 1 percent and measuring it more accurately would have lasting economic benefits that should outweigh short-term political objections, according to a study released today by the C.D. Howe Institute. In Precision Targeting: The Economics – and Politics – of Improving Canada’s Inflation-Targeting Framework, McGill University economist Christopher Ragan proposes a coherent five-part policy package for a renewed monetary policy agreement, due in 2011, between the Bank of Canada and the federal government.