In the history of Canada's monetary policy, why was the period from 1975 to 1982 notable?
A) because it was a time of steady prices and low unemployment
B) because of the emphasis placed on controlling interest rates
C) because of the emphasis placed on controlling the money supply
D) because of the emphasis placed on controlling money demand

Question

In the history of Canada's monetary policy, why was the period from 1975 to 1982 notable?  
A) because it was a time of steady prices and low unemployment 
B) because of the emphasis placed on controlling interest rates 
C) because of the emphasis placed on controlling the money supply 
D) because of the emphasis placed on controlling money demand

Quizplus · Accepted Answer

The period from 1975 to 1982 was notable in Canada's monetary policy because of the emphasis placed on controlling the money supply. The Bank of Canada implemented monetary targeting as a means of controlling inflation, which resulted in a change in the way monetary policy was conducted. The focus shifted from controlling interest rates to controlling the growth of the money supply, which had a significant impact on inflation rates during this period.

In the History of Canada's Monetary Policy, Why Was the Period