Of course, monetary policy does not function in isolation. It works best when it is complemented by fiscal policies aimed at avoiding deficits and lightening government debt burdens. Reducing, and ultimately eliminating, the federal deficit in the 1990s helped Canada’s international credibility, lowered the risk premium demanded by investors, and gave Canada more flexibility to adjust to changing economic circumstances.
However, the benefits of credit information sharing will only accrue if banks and other information providers ensure information availed to the Bureaus is accurate and credible. It is therefore imperative that banks and their customers and licensed Credit Reference Bureaus continue to work together to ensure accuracy and credibility of records.