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Monetary Aggregates

About Monetary Aggregates

The Bank of Canada manages the rate of money growth indirectly through its influence on short-term interest rates, or through the reserves provided to large deposit-taking institutions (see Canada's Money Supply).

Changes in the growth of M1+ provide useful information on the future level of economic activity. Changes in the growth of the broader monetary aggregates provide useful information about the future rate of inflation.

The monetary aggregates were affected by conversion to International Financial Reporting Standards (IFRS). The most significant effect relates to the chartered banks' reclassification of deposit liabilities to other liabilities, which resulted in decreases in deposit liabilities, and therefore historical continuity adjustments were applied to the monetary aggregates for the period February 1998 to October 2011.

Changes in M1+

This graph shows percentage changes in M1+ since1990, both in annualized, three-month percentage terms, and in year-over-year percentage terms.

* M1+ has been adjusted to remove the effect of clone funds.

Changes in M2++

This graph shows percentage changes in M2++ since1990, both in annualized, three-month percentage terms, and in year-over-year percentage terms.

* M2++ has been adjusted to remove the effect of clone funds.