The point I want to emphasize here is that with these policy anchors in place, a floating exchange rate can be a tremendous asset for an economy by helping to keep total supply and demand in balance. Conclusion In closing, let me say again that Canada has been a pioneer both in having a floating exchange rate and in operating with inflation targets.
Real gross domestic product (GDP) is now estimated to have been little changed in the first quarter after having risen at an average annual rate of 3–1/2 percent over the second half of last year, and industrial production has declined a bit, on balance, since the turn of the year.