If the levels of the aggregate consumer price indexes (CPIs) were found to be the same, adjusted for the $ exchange rate, the blue shaded area in Chart 1 would collapse to a single flat line and lie on the zero axis.1 In other words, the purchasing power of the Canadian dollar in each country would have been equalized.
This discretion enables the Bank of Namibia to control domestically induced inflation, which is estimated to contribute about 35 per cent to the overall inflation in Namibia. The institutional underpinnings of monetary policy in Namibia Let me now say something about the process of conducting our monetary policy.