Explainers

• February 3, 2025

  Understanding quantitative easing

  QE is a tool that encourages spending and investment—helping us to achieve our inflation target by stabilizing the economy.

  Content Type(s): Explainers Subject(s): Monetary policy, Economic models, Economy/Economic growth, Inflation, Inflation targeting framework
• December 20, 2024

  What is a central bank?

  A central bank works to promote a country’s economic stability and its citizens’ financial well-being.

  Content Type(s): Explainers
• July 28, 2022

  Understanding seigniorage

  At the Bank of Canada, we cover the cost of day-to-day business with “seigniorage,” which means earning money from issuing bank notes.

  Content Type(s): Explainers Subject(s): Currency, Bank notes, Funds management, Monetary policy, Economy/Economic growth
• December 24, 2021

  Understanding the output gap

  The output gap is the difference between what an economy actually produces and what it would produce in an ideal world.

  Content Type(s): Explainers Subject(s): Monetary policy, Economic models, Economy/Economic growth, Inflation
• December 24, 2021

  Understanding productivity

  High productivity helps raise our standard of living and keep our economy competitive.

  Content Type(s): Explainers Subject(s): Monetary policy, Economy/Economic growth, Inflation
• May 19, 2021

  Understanding the consumer price index

  The consumer price index (CPI) tracks how much the average Canadian household spends, and how that changes over time. At the Bank of Canada, we use it to target inflation.

  Content Type(s): Explainers
• April 5, 2021

  Understanding how monetary policy works

  It takes time for our policy decisions to filter—or be transmitted—through the economy and financial system.

  Content Type(s): Explainers Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
• August 13, 2020

  Understanding inflation targeting

  At the Bank of Canada, we aim to keep inflation close to 2 percent.

  Content Type(s): Explainers Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
• August 13, 2020

  Understanding inflation

  Inflation is a persistent rise in the average level of prices over time.

  Content Type(s): Explainers Subject(s): Monetary policy, Inflation, Inflation targeting framework
• August 13, 2020

  Understanding exchange rates

  The foreign exchange market determines how much the Canadian dollar is worth. At the Bank of Canada, we very rarely intervene to support its value.

  Content Type(s): Explainers Subject(s): Monetary policy, Economy/Economic growth, Inflation