The Future of Inflation Targeting Before I close, let me say a few words about the future of inflation targeting in Canada. As I noted at the beginning, our current agreement with the federal government is up for renewal in 2006.
If the economy were to turn up smartly and durably, policy might need to be unwound with the resolve equal to that in the accommodation phase. That is, the speed and force of the action ahead may bear some corresponding symmetry to the path that preceded it.