To prevent the Bank of Canada from using discretion is to impose some rule to govern monetary policy such as

Question

Quizplus · Accepted Answer

Inflation targeting is a rule-based approach to monetary policy that sets a target for the rate of inflation and uses monetary policy tools to achieve that target. This approach reduces the discretion of the central bank and provides a transparent framework for the public to understand the bank's policy decisions. Real interest rate targeting, money supply targeting, unemployment targeting, and aggregate output targeting all require a higher degree of discretion and are less effective in controlling inflation.

To Prevent the Bank of Canada from Using Discretion Is