According to the performance of the Canadian economy, and the evolution of economic theory, what is the most important goal of monetary policy?

Question

Quizplus · Accepted Answer

The most important goal of monetary policy according to the evolution of economic theory is price stability. This is because stable prices create an environment of certainty which encourages long-term investment, business planning, and economic growth. Additionally, stable prices also contribute to stable exchange rates and a stable financial system, further supporting economic growth. While GDP growth and employment growth are important considerations for policymakers, they are seen as secondary goals to price stability. Currency stability, while important, falls under the broader umbrella of price stability.

According to the Performance of the Canadian Economy, and the Evolution