In 1982, when the Bank of Canada was focusing its attention on reducing the growth rate of the money supply, an unplanned surge in led to an unintended tight monetary policy which caused .

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An unplanned surge in money demand led to an unintended tight monetary policy, which caused decreased inflation and a serious recession. This is because with a tight monetary policy, it becomes more difficult to borrow money, leading to a decrease in spending and ultimately slowing down the economy.

In 1982, When the Bank of Canada Was Focusing Its