21 More explicit coordination of fiscal and monetary policy would raise governance issues for both the government and the Bank, given our respective mandates. One interesting suggestion that came up at the workshop was to focus our research on ex ante mechanisms to coordinate policies, because complementary frameworks could deliver better outcomes. Conclusion Let me conclude.
Canada’s experience with inflation targeting has been much more successful than originally expected. In hindsight, we underestimated how powerful anchored inflation expectations would be in helping to keep inflation close to target. Our policy framework continues to work, and work well—inflation and inflationary expectations remain firmly anchored.