We can use a similar approach with the preamble - pulling apart its various pieces and focusing on them separately. Long-run economic performance So let me start with the stated objective of monetary policy, which is "… to regulate credit and currency in the best interest of the economic life of the nation… and generally to promote the economic and financial welfare of Canada."
This means that the Bank should conduct monetary policy so as to provide conditions that will allow the economy to expand in line with its full production potential. By production potential I mean the highest level and growth rate of output that can be sustained over the long run without triggering inflation pressures.