Explainers

• December 17, 2020

  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 Topic(s): Inflation targets, Monetary policy
• August 13, 2020

  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 Topic(s): Inflation and prices, Inflation targets
• August 13, 2020

  Understanding inflation targeting

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

  Content Type(s): Explainers 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 Topic(s): Inflation and prices, Inflation: costs and benefits
• August 13, 2020

  Understanding exchange rates

  The foreign exchange market determines how much our dollar is worth. The Bank of Canada very rarely intervenes to support its value.

  Content Type(s): Explainers Topic(s): Exchange rates
• May 6, 2020

  Understanding seigniorage

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

  Content Type(s): Explainers Topic(s): Bank notes
• January 31, 2020

  All about money in the 21^st century

  What money does, and how we’re handling it in the digital age.

  Content Type(s): Explainers Topic(s): Bank notes, Digital currencies and fintech
• January 15, 2016

  Target For The Overnight Rate

  Defines this important policy interest rate and describes the role it plays in influencing various market interest rates.

  Content Type(s): Explainers Topic(s): Monetary policy
• March 3, 2014

  Household Spending and Debt

  Highlights the value of ‘prudent’ borrowing in enhancing welfare, but also the risks of over-indebtedness for households, the economy and financial stability. Discusses trends in household debt, various debt metrics and why monetary policy is concerned with how households use borrowed funds.

  Content Type(s): Explainers Topic(s): Financial stability
• February 28, 2014

  Regulation of the Canadian Financial System

  Describes the shared responsibility for the regulation of the Canadian financial system and summarizes the Bank of Canada’s role in the financial system.

  Content Type(s): Explainers Topic(s): Financial system regulation and policies