In thinking about our macroeconomic policies, we can’t assume that all the shocks are behind us. We have seen the buildup of economic imbalances recently, with large current account surpluses in Asia and a large current account deficit in the United States. And fiscal imbalances are growing in Europe and the United States.
So how can the Bank of Canada help to prepare for the challenges ahead? Most importantly, we must stick with the monetary policy framework that we built in the 1990s. That means keeping our commitment to low, stable, and predictable inflation. And it means that our floating exchange rate will continue to be an important part of our monetary policy framework.