Thus, from 1982 to 1991, monetary policy in Canada was carried out with price stability as the longer-term goal and inflation containment as the shorter-term goal, but without intermediate targets or a specified path to the longer-term objective.
In February 1991, explicit targets for reducing inflation were introduced through joint announcements by the Bank and the federal government.5 These announcements confirmed price stability as the appropriate long-term objective for monetary policy in Canada and specified 5  The government’s announcement came as part of its annual budget, while the Bank issued a press release and a background note setting out practical details regarding the operation of the targets.