17  Since 1998, the Bank of Canada’s horizon has varied from five to ten quarters over our projection period. BIS Review 98/2009  5  accountability could be diminished, its credibility reduced, and potentially, inflation expectations themselves could become unanchored. 18 The key question is whether the financial stability benefit of greater flexibility is worth the price stability risk of forfeited credibility.
I view this as being important simply because a full appreciation of the Bank’s work and results does require a perspective beyond a few months or even beyond a single year. A single day, a few months or even a year is rather a short time to really gauge what monetary policy of the Bank can accomplish on a lasting basis.