In Part 1, I will scan back over the past four decades, comparing labour market performance in Canada before and after the introduction of inflation targeting. In Part 2, I will focus on labour market outcomes through the most recent cycle of recession and recovery. And in Part 3, I will comment on the challenges and opportunities that lie ahead.
Labour markets before and after inflation targeting A picture of inflation is worth a thousand words. As depicted in Chart 1, the change in the behaviour of inflation since the adoption of inflation targeting is stark.