Canadian Monetary Policy
1. Use contractionary monetary policy to keep inflation rate between 1%-3%.
2. Use moneatry policy to stablilize exchange rates slightly below the US dollar.
Dr. Stephanie Powers, “ Monetary Policy” slide 43 (ECON 101) at Red Deer College, March 21, 2012
Canadian Monetary Policy
  • Keep inflation stable
  • Use contractionary monetary policy to decrease inflation
  • Use monetary policy to stabilize exchange rates
  • Using high interest rates to control inflation can make it hard to service debt
  • “to contribute to solid economic performance and rising living standards for Canada by keeping inflation low, stable and predictable”
Reference: John Sayre and Alan Morris. Principles of Macroeconomics. McGraw-Hill Ryerson. Toronto, Ontario, 2012. Dr. Stephanie Powers, “Monetary Policy”, (class notes, PowerPoint presentation slides, accessed April 16, 2012)