Canada's explicit adoption of flexible inflation targeting as its monetary policy paradigm finally occurred in 1991, making it the first G7 economy to do so
In a recent visit to Israel, I had the pleasure of catching up with an old friend from Canada, Charles (“Chuck") Freedman. His may not be a household name in Canada, much less in India, but it ought to be: He fairly deserves credit for being one of the early pioneers of inflation targeting, a monetary policy paradigm which became orthodoxy during the course of the 1990s and 2000s and has even survived the global financial crisis relatively unscathed. With impeccable credentials as an economist (Toronto, Oxford, and finally Massachusetts Institute of Technology, where the legendary Charles Kindleberger supervised his doctoral thesis) and a stint teaching at the University of Minnesota in its heyday, Freedman joined the staff of the Bank of Canada, finishing his tenure with distinction, retiring in 2003 as deputy governor. Thereafter, he joined Carleton University, where I teach, as an adjunct professor, and co-founded a research centre on monetary and financial economics.