Inflation Targets Versus International Monetary Integration - a Canadian Perspective

37 Pages Posted: 29 Oct 2002

See all articles by David E. W. Laidler

David E. W. Laidler

University of Western Ontario - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: September 2002

Abstract

The debate about Canadian-U.S. monetary integration is surveyed. The choice is among overall monetary orders, rather than exchange rate regimes, and questions of policy credibility and political accountability are crucial. Canada's recent economic performance under inflation targets, and arguments that the flexible exchange rate has undermined real economic performance, are assessed. The most economically attractive among alternative monetary orders, the adoption by Canada of the US dollar with provision for meaningful Canadian input into policy decisions and supervision of the financial system, is not politically attainable. Intermediate arrangements are unattractive and clearly inferior to Canada's current monetary order.

Keywords: Monetary Policy, Exchange Rates, Central Banks, Inflation

JEL Classification: E42, E52, E58, F33

Suggested Citation

Laidler, David E. W., Inflation Targets Versus International Monetary Integration - a Canadian Perspective (September 2002). Available at SSRN: https://ssrn.com/abstract=344481 or http://dx.doi.org/10.2139/ssrn.344481

David E. W. Laidler (Contact Author)

University of Western Ontario - Department of Economics ( email )

London, Ontario N6A 5B8
Canada

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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