At the same time, it provides a clear framework to carry out unconventional monetary policy to provide additional stimulus, as required, in the shorter term. While Canada was not, and is not, a “crisis” economy, our experience through the crisis is illustrative.
The clarity and credibility of Canada’s inflation-targeting regime was a critical anchor through those turbulent times, giving the Bank an unwavering goal to guide its rapid and determined easing, and providing financial markets and the public with a clear means of understanding the rationale behind them.