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Options for the Bank of Canada’s New Mandate
 
The Bank of Canada has been successfully targeting 2% inflation for over 25 years. But changes in the economic environment suggest that — perhaps — a change in the Bank’s mandate is appropriate. Should the inflation target be raised, or would better economic performance come with lower inflation? Should asset prices play a larger role in the Bank’s deliberations, or perhaps the Bank’s primary focus should be on real variables such as GDP growth or the unemployment rate? As the Bank of Canada and the federal government gear up for a renewal of the Bank’s mandate, these options need to be examined carefully. The ongoing prosperity of Canadians is at stake. Chris Ragan from McGill University’s Max Bell School of Public Policy takes us through an examination of these options, clarifying some of the key points of debate.
 

Christopher Ragan is the founding Director of McGill University’s Max Bell School of Public Policy and is an Associate Professor in McGill’s Department of Economics.

Ragan was the Chair of Canada’s Ecofiscal Commission, which launched in November 2014 with a 5-year horizon to identify policy options to improve environmental and economic performance in Canada. He was also a member of the federal finance minister’s Advisory Council on Economic Growth, which operated from early 2016 to mid 2019. From 2010-13, Ragan held the David Dodge Chair in Monetary Policy at the C.D. Howe Institute, and for many years was a member of the Institute’s Monetary Policy Council. In 2009-10, Ragan served as the Clifford Clark Visiting Economist at Finance Canada; in 2004-05 he served as Special Advisor to the Governor of the Bank of Canada

 

Download a PDF copy of the slides here:  Options for the Bank of Canada's New Mandate - Chris Ragan

 

Chris Ragan has also asked that we share the link to the Max Bell online conference that he mentioned in the webinar:  https://www.mcgill.ca/maxbellschool/choosingtherighttarget. It has the videos of the presentations, but the papers are not yet ready for public distribution. They will be released over the next month or so, and they will be at this same link.