The Transmission Mechanism and the Effectiveness of Monetary Policy Actions
The Bank of Canada’s Target for the Overnight Interest Rate Policy Implementation Framework
Bank of Canada Review article by Christopher ReidCanada's monetary policy is built on a framework consisting of two key components:
Canada's flexible exchange rate permits us to pursue an independent monetary policy suited to the needs of our own economy and acts as a "shock absorber."
The target provides a precise goal against which to measure the conduct of monetary policy, increasing the Bank's public accountability.