Abstract:Inflationtargetingisanewmonetarypolicyregime,Canadaisoneoftheearliestcountries whichadoptedInflationtargeting.AfterabriefintroductionoftheCanadianinfl ationtargeting,thispaper analyses it's impacts toCanadianeconomybyusingtheimpulseresponsefunction.Theresearchsuggests thatInfl ationTargetinghasaremarkableef ectonloweringinfl ationpersistence,anchoringtheinfl ation expectation,andironingoutoutputfl uctuationinCanada.Theresultshedsomelightonmonetarypolicy frameworkadjustment in China.