While demand actually surged and created labour shortages in some sectors, labour supply has gradually returned to its pre-pandemic level; the unemployment rate is at historical lows, but hours worked have not recovered everywhere.3 The causes of these differences are debated. For the US, at least two points are worth mentioning.
It is an important relative price, which the Bank monitors closely. •  What ultimately matters is the exchange rate's impact in conjunction with all other domestic and foreign factors on aggregate demand and inflation in Canada. To put it simply, the Bank looks at everything through the prism of achieving our inflation target.