The cost of this misadventure is lower output of about 1 per cent and higher volatility in inflation, output and employment than when the exchange rate is allowed to do its work (Chart 14). The outcome could be even worse if the Bank cannot quickly re-establish its credibility after betraying earlier commitments to Canadians.
The Constitution protects and safeguards their interests. This is how markets work – that is how development of markets and institutions takes place.   The government economic agenda is guided by the strategic framework for faster development underpinned by a stable macroeconomic environment and structural reforms aimed at raising productivity and improving business climate.