Canadians have benefited in a number of important ways from this regime. An improved inflation environment has allowed consumers and businesses to manage their finances with greater certainty about the future purchasing power of their savings and income. Interest rates have also been lower in both nominal and real terms across a range of maturities.
More broadly, low, stable and predictable inflation has helped to encourage more stable economic growth in Canada and lower and less-variable unemployment (Table 1). The reduced cyclical variability in unemployment has particularly benefited more vulnerable households. Unemployment rates for younger workers and those with less education are considerably more variable than those for well-educated, prime-age workers (Table 2).