Inflation Control Target Renewal The 2011 inflation control target agreement between the Government of Canada and the Bank of Canada runs to the end of 2016. Source: Bank of Canada, November 2011 ...

Inflation Control Target Renewal

The 2011 inflation control target agreement

between the Government of Canada and the

Bank of Canada runs to the end of 2016.

Source: Bank of Canada, November 2011

a. What role does the inflation control agreement say about the Bank’s control of the

quantity of money?

b. Why is it important that the agreement be

renewed in 2016 and what might be some

obstacles to its renewal?