3  Bank of Canada, “Renewal of the Inflation-Control Target: Background Information – November 2011.”  4  T. Macklem, P. Osakwe, H. Pioro and L. Schembri, “The Economic Consequences of Alternative Exchange Rate and Monetary Policy Regimes in Canada,” paper delivered at the Bank of Canada conference, “Revisiting the Case for Flexible Exchange Rates,” November 2000.
2  BIS central bankers’ speeches  purchases because they expect the things they buy will be less expensive in the future. This depresses demand. And as prices and wages fall, the real burden of mortgages and other nominal debt commitments increases, further depressing demand. Today, with inflation at about 1 per cent, prices are rising, not falling.