It was with this in mind that the Bank of Canada decided to add the special annex to its last Report. Our framework for conventional monetary policy, based on a flexible exchange rate, an explicit inflation target, and clear accountability has served us well, and will continue to guide our future actions.
The annex builds on this foundation, providing a clear contingency plan for unconventional measures and for dealing with some extraordinary challenges. Monetary and fiscal policy responses Policy-makers in Canada, the United States, and elsewhere have moved with exceptional speed and determination to support financial markets, restore growth, and re-equilibrate the real economy.