The primary mission of central banks has traditionally been to contain inflation. In the words of the Bank of Canada, “At the heart of the Bank’s monetary policy is a commitment to maintaining low and relatively stable inflation — in particular, to keep the rate of inflation close to the 2 percent midpoint of the 1 to 3 percent target range.” However, in the past decade, other motivations besides inflation moved to the center of their decision-making, such as employment and economic growth. The result is central banks around the world purchasing trillions of dollars of domestic sovereign debt. Read More
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