When the Bank of Canada will begin raising interest rates is looking very different than when it should even though the risks of postponement are growing. If more “no-change” decisions are made by the Bank of Canada regarding its policy interest rate, inflation expectations might begin to...

Does a central bank that is independent of political influence deliver a better macroeconomic performance than one that implements monetary policy decisions taken by government? Does an inflation targeting agreement between central bank and government improve macroeconomic performance? And does...

The search for a relationship between central bank laws and monetary policy outcomes, which began three decades ago, is part of a larger enterprise to discover the monetary policy framework that delivers the best macroeconomic performance. A 'monetary policy framework' is a set of institutional...

not available

The recent financial crisis has emphasized the role of sound monetary policy for ensuring Canada’s future prosperity. Although much is right with the Bank of Canada’s inflation-targeting regime, improvements such as price-level targeting and closer attention to potential financial...