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Renewal of Canada's Monetary Policy Framework

December 09, 2021

David Dodge comments in the Globe and Mail on the upcoming announcement by Canada's Minister of Finance to renew the Bank of Canada's mandate.

David says the existing mandate of targeting 2 percent inflation is clear and should not be changed.

“And I feel more strongly now that is the right option than I did when I was governor,” he told The Globe in an interview.

Mr. Dodge said his advice would be to avoid moving toward a dual mandate that features both an inflation target and an employment target.

“That’s what gets us into trouble,” he said, warning that focusing on employment risks repeating the periods of high inflation of the 1960s and 1970s.

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