Consult these brief articles explaining various topics related to the Bank of Canada's core functions.
Latest explainers
- The difference between the price level and inflationPrice levels are a measure of the average cost of goods and services in the economy at a particular point in time. Inflation measures the rate of change in prices over a specific period. […]
- Why we target 2% inflationInflation measures the rate of growth in prices, and the Bank of Canada aims to keep it at 2%. When inflation is low, stable and predictable, the entire economy works better. […]
- What is a flexible exchange rate?Canada has a flexible exchange rate. The value of our dollar is not fixed to the value of any other currency or to a precious metal such as gold. […]
- The difference between a trade surplus and a trade deficitA trade surplus and a trade deficit are both measures of a country’s balance of trade. They are a calculation of whether a country exports or imports more. […]
- Understanding our policy interest rateAt the heart of the Bank of Canada’s monetary policy is the target for the overnight rate. See what it is—and what it means for you. […]
- What is a tariff?A tariff is a tax on imports from another country. It can increase the prices consumers and businesses pay for that good. […]
- What does the Bank of Canada do?The Bank has five main areas of responsibility that affect Canadians’ everyday lives. […]
- How is the Bank of Canada run?The Bank of Canada is a Crown corporation that is run independently from the government. […]
- Is the Bank of Canada independent from government?The Bank of Canada is a Crown corporation that is owned by the federal government, but we are separate from the political process. […]
- Understanding quantitative easingQE is a tool that encourages spending and investment—helping us to achieve our inflation target by stabilizing the economy. […]
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