The objective of the course is to highlight the impact of recent developments in economic theory on the conduct of monetary policy, with particular attention to the decision by many central banks (including the Bank of Canada) to adopt an inflation target as the sole macroeconomic objective of monetary policy. Attention will be devoted to the conduct of monetary policy in informationally efficient capital markets, and to topical issues such as the complications posed for the conduct of monetary policy by possible “bubbles†in the stock and housing markets.
