In 1991, the Bank of Canada adopted an inflation-control target. The current target rate of inflation is

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In 1991, the Bank of Canada adopted an inflation-control target. The current target rate of inflation is 2%, with a target range of 1 to 3%. Many Canadians welcome the adoption of the inflation-control target as it allows them to make better economic decisions. Explain how both creditors and debtors can benefit from having an inflation-control target.

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Macroeconomics

ISBN: 978-1319120054

3rd Canadian edition

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

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