Explainers

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.

A tariff is a tax on imports from another country. It can increase the prices consumers and businesses pay for that good.

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

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.

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

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