3 Central bank liquidity measures: pre-crisis Prior to the crisis, the tools used by the Bank to provide liquidity to the financial system as a whole were measures designed primarily to reinforce our target for the overnight interest rate. 4 These tools were – and still are – part of the Bank of Canada’s standard operating framework for the implementation of monetary policy.
Now I know full well that philosophers from antiquity cannot provide us with any immediate input on CBDC (Central Bank Digital Currency). But take it from me: even in our discussions about a digital euro Aristotle does play a role from time to time. I will come back to this at the end of my speech.