Monetary Policy

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