8)  Wu, Jing Cynthia and Fan Dora Xia (2014). “Measuring the Macroeconomic Impact of Monetary Policy at the Zero Lower Bound”. NBER Working Paper No. 20117. 16  BIS central bankers’ speeches  Technical appendix An econometric exercise is conducted in order to analyze the main determinants of policy rates in small and open economies.
These include: the strength of demand pressures; the evolution of inflation expectations; the impact on confidence of global economic uncertainties; and the way in which the war in Iraq affects demand and inflation, both globally and in Canada. The Bank continues to monitor all of these factors and will adjust monetary conditions to keep Canadian inflation low, stable, and predictable over the medium term.