A brief history of inflation targets in Canada In response to the persistence of high inflation during the 1970s, the Bank of Canada adopted a narrowly defined monetary aggregate (M1) as a target in 1975.
When this aggregate became increasingly unreliable and turned out not to have been all that helpful in achieving the desired lessening of inflation pressures, it was eventually dropped as a target in 1982. Subsequently, the Bank embarked on a protracted empirical search for an alternative monetary aggregate target, but no aggregate was found that would be suitable as a formal target.