This has been the source of many benefits, but it has also been accompanied by new challenges. In particular, as the global financial crisis (GFC) has clearly shown, the growing interdependence that has resulted from globalization means the economic problems of one country can be rapidly transmitted to others.
Forthcoming research at the Bank of Canada indicates that this relationship continues to hold in Canada, although it has diminished in many other countries. 15 We will continue to monitor the stability of this relationship, and the Bank will also continue to look at a range of measures to assess the underlying trend of inflation.