Explainers

17 result(s)

August 14, 2025

The difference between a trade surplus and a trade deficit

A 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.

Content Type(s): Explainers Research Topic(s): Inflation and prices, International topics

June 17, 2025

Understanding our policy interest rate

At 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.

Content Type(s): Explainers Research Topic(s): Monetary policy

June 11, 2025

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.

Content Type(s): Explainers Research Topic(s): Credibility, Expectations, Inflation and prices, International topics

February 18, 2025

What does the Bank of Canada do?

The Bank has five main areas of responsibility that affect Canadians’ everyday lives.

Content Type(s): Explainers

February 18, 2025

How is the Bank of Canada run?

The Bank of Canada is a Crown corporation that is run independently from the government.

Content Type(s): Explainers

February 18, 2025

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.

Content Type(s): 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 Research Topic(s): Inflation targets, Monetary policy

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 Research Topic(s): Bank notes

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 Research Topic(s): Productivity

December 24, 2021

Understanding productivity

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

Content Type(s): Explainers Research Topic(s): Productivity

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 Research Topic(s): Inflation and prices, Inflation targets

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 Research Topic(s): Monetary policy

August 13, 2020

Understanding inflation targeting

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

Content Type(s): Explainers Research Topic(s): Inflation and prices, Inflation targets

August 13, 2020

Understanding inflation

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

Content Type(s): Explainers Research Topic(s): Inflation and prices, Inflation: costs and benefits

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 Research Topic(s): Exchange rates

January 31, 2020

Understanding money in the 21^st century

Here's what money does—and how we’re handling it in the digital age.

Content Type(s): Explainers Research Topic(s): Bank notes, Digital currencies and fintech

Corporate governance

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Reconciliation Action Plan

Bank of Canada Museum

What is a central bank?

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Corporate governance

Accessibility

Reconciliation Action Plan

Bank of Canada Museum

What is a central bank?

Careers

Featured

Renewing Canada’s monetary policy framework

Retail payments supervision

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Canada Mortgage Bonds

Research and reports

Our next $20 bank note

Economic survey results

Monetary Policy Report—July 2025

People

Info

Press Conference: Monetary Policy Report – July 2025

Staff economic projections

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