Current economic developments in Canada Having set out this global context, let me now turn to how Canada fits into the picture. As I said at the outset, like Barbados, Canada has a very open economy, so how we deal with the current challenges is crucial to our economic health.
We have been following policies that allow the Canadian economy to adjust to global developments. Let me say a few words here about my own area, which is monetary policy. Canada's monetary policy consists of an inflation-targeting system, backed by a freely floating exchange rate.