A well-educated and flexible labour force The most important factor of production and our biggest strength is our labour force. Canadian workers are well educated, and our labour market is increasingly flexible. High-school completion in Canada is near universal, and Canadian students perform well relative to their peers, based on results of international assessments.
The part of policy not explained by the rule then reflects the large volume of information about the economy and its prospects that is not captured by current inflation and unemployment rates but that the FOMC does take into account. The FOMC uses all this information in an attempt to anticipate developments; the Taylor rule is backward looking.