Choosing the Right Target

The COVID-19 pandemic has disrupted the world, pushing the global economy into recession and forcing countries to take on nearly unprecedented levels of public debt. Discussion and debate over the pathway to economic recovery are already underway. In this context, monetary policy is a crucial policy tool.

With the Bank of Canada’s mandate up for renewal this year, it is time to start thinking about what monetary policy in the post-pandemic era should look like. McGill University’s Max Bell School of Public Policy held a four-day online conference from September 22-25, 2020, during which independent economists from across Canada, the United States, and Europe examined the Bank’s mandate and explored the most credible options for the next phase of Canadian monetary policy. Read the resulting research papers by conference presenters, discussants and panelists, each exploring a different option for the mandate's renewal.

The History of Inflation Targeting and the Case for Maintaining the Status Quo

18 Feb 2021

Michelle Alexopolous argues that the evidence in favour of the various alternatives is not yet strong enough to justify the risks involved in abandoning the status quo.

Clouded in Uncertainty: Pursuing Financial Stability with Monetary Policy

9 Feb 2021

Sylvain Leduc of the Federal Reserve Bank of San Francisco on the merits of incorporating asset prices into the inflation targeting framework.

Nominal GDP Level Targeting

3 Feb 2021

Steve Ambler and Nicholas Rowe discuss the consequences of prioritizing the nominal GDP over the rate of inflation.

The Case for Raising the Bank of Canada’s Inflation Target

26 Jan 2021

Luba Petersen and Shannons Wells make the case for a higher rate of inflation, with Michael Devereux as a discussant.

Back to top