One of my main responsibilities at the Bank is overseeing the analysis of domestic economic developments in support of monetary policy decisions. It is always very helpful to meet the people and visit the places behind the economic trends we are tracking. My speech today is about inflation targeting.
It might be difficult to imagine now, but back in the 1980s, interest rates on mortgages topped 20 per cent. That, of course, was before we signed a pioneering inflation-control agreement with the federal government in 1991. Canada was the second country in the world – after New Zealand – to adopt an inflationtargeting regime.