In order to promote price stability as the long-term goal of monetary policy, Bank of Canada Governor John Crow and the minister of finance set inflation targets with a band of plus or minus one percentage point around them.Through the late 1980s and early 1990s Canada saw ________ and ________.

Question

Quizplus · Accepted Answer

Through the late 1980s and early 1990s, Canada experienced disinflation and high unemployment. Disinflation refers to a slowdown in the rate of inflation, which was a goal of the monetary policy adjustments, while high unemployment was a significant challenge during this period.

In Order to Promote Price Stability as the Long-Term Goal