What is the Ideal Monetary Policy Regime? Improving the Bank of Canada's Inflation-targeting Program

Abstract

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 instability should be considered in the lead-up to the renewal of the program in 2011.monetary policy, central bank policy, inflation-targeting program