Renewal of the Bank of Canada's Inflation-Targeting Agreement with the Government of Canada
stevewilliamson.substack.com
I wrote a piece for the C.D. Howe Institute in April 2021, making the case that the Bank of Canada should keep the then-existing agreement with the government in place, without amendments, when the time came to renew the agreement. So, the time has come and, indeed, the new agreement is more or less the same as the old one, in terms of the specifics. In practice, this could make little difference for actual Bank policy actions. But the new agreement certainly is not an improvement, as it adds vague and unnecessary language that most people will find hard to understand.
Renewal of the Bank of Canada's Inflation-Targeting Agreement with the Government of Canada
Renewal of the Bank of Canada's…
Renewal of the Bank of Canada's Inflation-Targeting Agreement with the Government of Canada
I wrote a piece for the C.D. Howe Institute in April 2021, making the case that the Bank of Canada should keep the then-existing agreement with the government in place, without amendments, when the time came to renew the agreement. So, the time has come and, indeed, the new agreement is more or less the same as the old one, in terms of the specifics. In practice, this could make little difference for actual Bank policy actions. But the new agreement certainly is not an improvement, as it adds vague and unnecessary language that most people will find hard to understand.