Introduction Monetary policy is one of the tools that a national Government uses to influence its economy. Using its monetary authority to control the supply and availability of money, a government attempts to influence the overall level of economic activity in line with its political objectives. Usually this goal is "macroeconomic stability" - low unemployment, low inflation, economic growth, and a balance of external payments. Monetary policy is usually administered by a Government appointed "Central Bank" like the Bank of Canada. Canadas monetary policy is concerned with how much money circulates in the economy, and what that money is worth. The ultimate objective of monetary policy is to promote solid economic performance and higher living standards for Canadians. The best way to achieve that objective is to keep inflation low, stable, and predictable. This gives Canadians confidence in the future value of their money, so that they can make sound economic and financial decisions. The foundation of Canadas monetary policy framework is a target for inflation as measured ......

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