Explainers

• February 6, 2026

  What is money?

  We use money to pay for goods and services. Canadians are using digital money more than ever before, but cash still plays an important role in our economy.

  Content Type(s): Explainers Subject(s): Currency, Bank notes, Digital currency, Financial system, Fintech
• January 19, 2026

  What is gross domestic product?

  Gross domestic product (GDP) is a measure of a country’s total economic output—the total value of all goods and services produced within that country—usually over the course of one year.

  Content Type(s): Explainers
• October 3, 2025

  The difference between the price level and inflation

  Price 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.

  Content Type(s): Explainers Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
• September 29, 2025

  Why we target 2% inflation

  Inflation 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.

  Content Type(s): Explainers Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
• September 3, 2025

  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.

  Content Type(s): Explainers Subject(s): Financial system, Financial markets, Monetary policy, Economy/Economic growth
• 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 Subject(s): Financial system, Financial stability, Monetary policy, Economy/Economic growth, Inflation
• 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 Subject(s): Monetary policy, Economy/Economic growth, Inflation targeting framework
• 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 Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
• 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