June 24, 2015
The Bank of Canada should focus monetary policy on inflation, not systemic risk, according to a new report released today by the C.D. Howe Institute. In “Securing Monetary and Financial Stability: Why Canada Needs a Macroprudential Policy Framework,” authors Paul Jenkins and David Longworth address the importance for the conduct of Canadian monetary policy of having a separate coherent framework for macroprudential policy – designed to prevent the build-up of systemic, or system-wide, financial risks.
