From Money Targeting to Inflation Targeting: The Change in the Role of Money in the Conduct of Monetary Policy

  • Charles Freedman
  • Charles Goodhart


From the day of his arrival in 1975, David Laidler has made important contributions to both monetary theory and monetary policy in Canada. Of course, even before he came to Canada, he was well known by reputation to Bank of Canada staff, particularly from the first edition of his textbook on the demand for money (Laidler, 1969) and his involvement in the debate on the causes of inflation in the United Kingdom (Laidler and Parkin, 1975). But we were looking forward to interacting with him in person and hoping that he would become involved in the monetary policy debates in Canada. On both counts, David’s time in Canada has been a great success. And for me personally, it has been an enormous pleasure to discuss and debate issues of monetary theory and policy with David over the past 30 years, as well as to learn from him, and not infrequently to disagree with him. Initially, we met at academic meetings of various types, later at the C. D. Howe Institute, and subsequently during a very pleasant year when David was the first visiting Special Adviser at the Bank of Canada.


Interest Rate Monetary Policy European Central Bank Money Demand Inflation Target 
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© Charles Freedman and Charles Goodhart 2010

Authors and Affiliations

  • Charles Freedman
  • Charles Goodhart

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