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 Subject(s): About the Bank
• 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 Subject(s): About the Bank
• 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
• February 24, 2023

  The lifespan of a bank note

  At the Bank of Canada, we assessed the life cycle of bank notes to confirm that polymer notes have a smaller environmental footprint than paper notes. Polymer notes have a longer life and then are recycled.

  Content Type(s): Explainers Subject(s): Currency, Bank notes
• 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
• January 1, 2021

  About legal tender

  Find out what “legal tender” means, why legal tender status changes, and how to redeem older bank notes.

  Content Type(s): Explainers Subject(s): Currency, Bank notes