However, within an institutional arrangement that enshrines central bank independence, there is scope for ex ante 8  BIS central bankers’ speeches  sharing of information and judgment between the two authorities. After all, the inflation target in Canada is agreed to by the central bank and the government.
This institutional framework is a simple yet elegant form of monetary and fiscal policy coordination that may have anticipated some recent literature (e.g., Leeper and Leith 2016). My guess is that Doug Purvis already understood most of this. Certainly, he pointed us in the right direction 30 years ago.