Why Monetary Policy Matters: A Canadian Perspective

by Christopher Ragan

Introduction

1. The Economy and Economic Policy
   • 1.1 What is monetary policy?
   • 1.2 Why focus on inflation?
2. Canada's Inflation Performance, and Why It Matters
   • 2.1 Inflation and uncertainty
   • 2.2 Why inflation uncertainty matters
3. Stability in Canada's Output, and Why It Matters
   • 3.1 Has Canadian output growth become more stable?
   • 3.2 Why stable output growth is desirable
   • 3.3 Good policy or just good luck?
4. Monetary Policy: How It Works, and What It Takes
   • 4.1 The transmission mechanism of monetary policy
   • 4.2 Time and uncertainty
   • 4.3 Monetary policy faces two types of uncertainty
   • 4.4 Good information, and plenty of it
5. Final Remarks
   • Appendix: The Continuing Puzzle of the Inflation-Growth Relationship
     
   • Glossary of Economic Terms
     
   • References
     

You can download this complete publication.