Low and stable inflation has provided an important element of certainty in a time of rapid change. And monetary policy has helped to facilitate adjustment by supporting aggregate demand to keep the economy near its full potential and inflation on target. A strong world economy has also helped, making the adjustment process somewhat easier.
But much of the success of this far-reaching adjustment is also a testament to the flexibility of Canadian workers and businesses. 6  BIS Review 77/2006  BIS Review 77/2006  7