This pretty much covers what monetary policy can realistically do to support economic growth in the long run and to smooth out short-term fluctuations. Other things people expect monetary policy to do Let me now give you a flavour of the specific concerns and problems monetary policy is often asked to address directly - and, for the most part, cannot.
These no doubt will sound familiar as the Canadian economy has been going through a period of adjustment during which the challenges for many industries and their employees have become more intense than usual. 2  BIS Review 62/2006  Moderate movements in the exchange rate Topping the list of concerns are exchange rate movements.