Charles Goodhart has also argued that “pre-commitment, even if desirable, is not even really feasible, especially in a system of decision-making by committees, with changing membership and political oversight.” We will continue to learn from what others are doing, from their successes and their mistakes.
We look at both of these, and the factors that drive them, to understand how prices are set in Canada which, in turn, contributes to our analysis of the inflation expectations of Canadian households and businesses and, ultimately, to our ability to fulfill the Bank’s mandate.