In these circumstances, policymakers must be mindful of the uncertainties surrounding the outlook for commodity prices and the risk that past or future increases in these goods could yet embed themselves in higher long-run inflation expectations and a persistently faster rate of overall price increases. Besides these complications, globalization has made the workings of the monetary policy transmission mechanism more unpredictable.
11  The Federal Reserve's Term Auction Facility, similar to the Bank of Canada's proposed term-loan facility, has significantly less stigma than its discount window lending. 12  See W. Engert, J. Selody and C. Wilkins, "Financial Market Turmoil and Central Bank Intervention," op. cit. Also see M. Carney, "Principles for Liquid Markets," op. cit.