PRICE STABILITY - HOW CANADA GOVERNOR CROW APPROACHED IT

From 1976 to 1986, Canada's price level had more than doubled. Over th e next 10 years, from 1986 to 1996, it rose only by a little over one- third. The appointment of Governor Crow to lead the Bank of Canada in 1987 and more principled devotion to the goal of price stability in a number of other advanced industrial countries contributed to the drama tic change in outcomes. This article seeks to discern and appreciate t he structures of the model implicit in the Governor's successful appro ach to achieving a lasting reduction of the rate of inflation to near zero. (C) 1998 Society for Policy Modeling. Published by Elsevier Scie nce Inc.