Steps have also been taken to modernize the Bank of Canada Act. Amendments to the Act, designed to allow the Bank more flexibility in providing liquidity to the financial system in response to changing circumstances, were passed by Parliament, and have recently been proclaimed.
Whatever policy does in response to short-term needs, that policy should be formulated in the context of a sound overall long-run strategy. The path of trend productivity growth has many underlying determinants--the vibrancy of technology, the strength of entrepreneurial motives, the flexibility of labor and capital markets, and the effectiveness of regulatory policies, to name a few.