A lively debate is underway about replacing Canada's 2 percent inflation target with a target for lower inflation or a target for the price level itself when Canada's inflation-control arrangement expires at the end of 2011. Either change could reduce uncertainty about changes in the value of...

Financial instruments indexed to the general price level are of great potential use to borrowers and lenders alike. But up until recently, they have been relatively scarce – in part because private borrowers dislike offering protection against inflation that they do not control. Since the...

Inflation and taxation are a painful combination. Money losing its purchasing power hurts on its own, but tax provisions that ignore inflation can multiply the pain for earners, savers, and recipients of benefit programs as well.This E-Brief identifies problematic interactions between inflation...