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Globe and Mail - Monetary policy committee to examine adding jobs to BoC goals

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Published: 21Oct2011

The House of Commons finance committee will examine whether the Bank of Canada should target "full employment" in its monetary policy, a shift that would resemble the dual mandate of the U.S. Federal Reserve. In a unanimous vote Thursday, committee members agreed to consider possible new policy goals for the central bank ahead of the government's looming decision on whether to renew or modify the bank's current inflation target of 2 per cent.

Chris Ragan, a McGill University professor who has served as an adviser at the Bank of Canada, said the reason most central banks focus the bulk of their energy on inflation is because they have much more direct control over it than something like "full" employment.