Indeed, as Claudio Borio put it, "no country embracing inflation targeting has regretted doing so. "2 Back in 1991, Canada had several compelling reasons for moving to inflation targeting. Compared with today, inflation was still relatively high.
Further, the Bank of Canada and the federal government wanted to minimize the possibility of a wage-price spiral developing in the wake of the introduction of the Goods and Services Tax. We recognized the importance of having both the general public and financial markets understand our actions.