News
Globe and Mail - A new take on combatting inflation
Published: 6 September 2011
The economic academy’s thinking about monetary policy is turning heretical. For two decades, central banking in the United States, Canada and the rest of the world’s advanced economies has been rooted in the simple notion that policy should target an annual inflation rate of 2 per cent.
“An inflation target right now isn’t preventing anyone from monetary stimulus,” said Christopher Ragan, an economics professor at Ď㽶ĘÓƵ in Montreal and a former adviser at the Bank of Canada. “In Canada and the U.S., you have central banks that have it wide open. I don’t think they are worried about inflation.”
