Sound economics help - Dodge speech

David Dodge identifed the Bank of Canada's inflation-targeting regime as a key stablising force for the Canadian economy. He was speaking in Berlin at the to the German-Canadian Business Club.

A turning point, he argued, had been the bank's adoption of an inflation-targeting regime in 1991. Now, under a joint agreement with the federal government, the bank aims to keep consumer-price inflation at the 2 per cent midpoint of a 1 to 3 per cent range. If the trend of inflation moves away from the

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