Since 1989, the Bank of Canada used ________ as the operating target and ________ as the ultimate goal of monetary policy.

Question

Quizplus · Accepted Answer

Since 1989, the Bank of Canada has used the overnight interest rate as the operating target and the inflation rate as the ultimate goal of monetary policy. This is done through the use of inflation targeting, where the Bank sets an explicit target for the rate of inflation and adjusts the overnight interest rate in order to achieve that target. This approach has been successful in keeping inflation low and stable in Canada.

Since 1989, the Bank of Canada Used ________ as the Operating