Canada's Monetary Policy Shift Leads to More Proactive Inflation Prevention
The study looked at how monetary policy in Canada has changed over time using a special type of math model. The results show that since the 1990s, monetary policy has become more focused on preventing inflation by watching the economy closely. This means that when the government changes interest rates, people and businesses are more likely to react. Overall, the study suggests that Canada's monetary policy has become more forward-thinking and less reactive to sudden changes in inflation.