The Bank of Canada should pay closer attention to the effects of money and credit growth on inflation and asset markets, according to a study released today by the C.D. Howe Institute. In Putting Money Back into Monetary Policy: A Monetary Anchor for Price and Financial Stability, authors Dr. David Laidler, Fellow-in-Residence and member of the C.D. Howe Institute’s Monetary Policy Council and Philippe Bergevin, C.D. Howe Institute Policy Analyst, propose that the Bank of Canada should begin to calculate and publish a “reference value” for broad money growth.
October 27, 2010