8 Most significantly, the Bank is now guided by the discipline of an inflation target. Canada helped pioneer inflation targeting, having adopted it in 1991 under the Governorship of John Crow. 9 During the Great Recession, its value was clear.
By disciplining our objectives and promoting transparency and accountability, the target has anchored inflation expectations, thereby ensuring that reductions in our overnight rate drive down real interest rates and stimulate the economy. Financial system stability and the provision of liquidity Consider now a second challenge that has echoed across the decades.