As regards the elements of policy that do not depend on the central bank, I have touched on three crucial areas: disciplined fiscal policies, fully in line with the Stability and Growth Pact; structural reform policies, fully in line with the Lisbon Agenda and the completion of the Single Market; and appropriate monitoring of the relative cost competitiveness indicators.
The Bank of Canada does this by means of a committee that debates the issues and comes to a decision. Interestingly, research suggests that the composition of a committee and the structure of a meeting can affect the quality of decision making, both in central banking 5 and elsewhere. The Bank's committee is called the Governing Council.