Strengthening Canada’s Economic Toolkit: Improving the Inflation Targeting Framework

2019-03-26T15:08:03-04:00November 1, 2016|

By Maurice Obstfeld, Douglas Laxton, Yulia Ustyugova, and Hou Wang

For the past 25 years, Canada’s monetary policy framework has been working well. Headline inflation averaged 1.9 percent, 1994–2015, and long-term inflation expectations have been very well anchored to the 2 percent target (Chart 1).