Inflation Targeting 101 The Bank’s mandate is to mitigate “…fluctuations in the general level of production, trade, prices and employment, so far as may be possible within the scope of monetary action, and generally to promote the economic and financial welfare of Canada.”2 High and volatile inflation in the 1970s and 1980s taught us that the best way for us to achieve these objectives is to keep inflation low, stable and predictable.
They were undertaken early in the reform cycle, in early 1990s. They were designed by eminent professionals in the country, and implemented pragmatically. This is evident from the dynamic mix between public and private ownership and transition of Development Financial Institutions as well as Unit Trust of India into their new incarnations.