Why do we need a floating exchange rate? If we want to set our own goal for inflation or, what's more relevant (since today all industrial countries pursue a similar low-inflation objective), if we want to run a monetary policy suited to our own distinct economic circumstances, we need monetary independence. Monetary independence can exist only within a flexible exchange rate system.
6 Canada needs to become fully engaged with these emerging centres of economic power. Monetary policy going forward In the wake of the shock of the global financial crisis, the Bank of Canada was aggressive.