Monetary targets and indicators in an open economy: reflections on the Canadian experience

Authors

  • J.E. PESANDO
  • L.B. SMITH

DOI:

https://doi.org/10.13133/2037-3643/11492

Keywords:

Canada, monetary policy, targets, indicators, open economy, Bank of Canada, transmission mechanism

Abstract

The choice of the appropriate target and indicator in monetary policy has been the subject of considerable debate in recent years, however, analysis has tended to be theoretical in nature and confined to the case of a closed economy. The present work provides an additional perspective on this debate by examining the target-indicator issue in the context of the actual experience of an open economy. The authors illustrate the complications which arise concerning the choice of monetary targets and indicators in the case of an open economy. They then show that the Bank of Canada’s choice of monetary targets and indicators is intimately related to its view of the transmission mechanism.

 

JEL: E52

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Published

2014-01-03

How to Cite

PESANDO, J., & SMITH, L. (2014). Monetary targets and indicators in an open economy: reflections on the Canadian experience. PSL Quarterly Review, 29(116). https://doi.org/10.13133/2037-3643/11492

Issue

Vol. 29 No. 116 (1976)

Section

Editorial

License

 
 
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