Interpretations: the “global savings glut”, “Bretton Woods II”, and the “global asset shortage”  Several explanations for the widening of current account imbalances have been suggested. The main strands of this broad literature put some of the mechanisms mentioned above at the centre of the analysis.
That is, the Bank cares as much about inflation being below target as above. Since the crisis erupted, the Bank has demonstrated its flexibility and nimbleness in the conduct of monetary policy. As the Canadian recovery has progressed, we have emphasised that we would be prudent with respect to the possible withdrawal of any degree of monetary stimulus.