And this effort has been bolstered by our moves towards greater transparency. The economic benefits of establishing trust During the 1970s and 1980s, the Bank of Canada had ample experience with operating in an environment where Canadians had significantly less confidence in the Bank’s ability to safeguard the domestic value of the currency.
Inflation was choppy and unpredictable, and the Bank of Canada was struggling to come up with an appropriate anchor for monetary policy. However, in recent years, Canadians have gained confidence that we will keep inflation low, stable, and predictable, thanks to our system of explicit inflation targets and our success in meeting them.