In an effort to maintain inflation at its targeted level the Bank of Canada designs its policies,in the short run,to

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The Bank of Canada's policies are designed to keep real GDP close to potential output which helps maintain a stable inflation rate in the short run. Eliminating all unemployment or negative shocks to the economy may not be feasible or effective in achieving this goal. Minimizing the growth of the money supply may be a part of the policy, but it is not the sole focus. Allowing the aggregate supply curve to close any output gaps may also be a part of the policy, but it is not the primary objective.

In an Effort to Maintain Inflation at Its Targeted Level