The Bank of Canada should pay closer attention to the effects of money and credit growth on inflation and asset markets, according to a study released Wednesday by the C.D. Howe Institute.

The study’s authors, Dr. David Laidler, fellow-in-residence and member of the C.D. Howe Institute’s Monetary Policy Council and Philippe Bergevin, policy analyst, propose that Canada’s central bank should begin to calculate and publish a “reference value” for broad money growth.

The authors contend that maintaining price stability should remain the BoC’s only formal goal, but say greater attention should be paid to asset market stability.

Once the role of asset markets in the mechanics of inflation or price-level targeting is made explicit, such a policy will promote orderly asset market behaviour, they say.