"The inflation target and a floating exchange rate work well together—indeed they reinforce each other. This approach has worked extraordinarily well for us over the last decade."
— Governor David Dodge, Canada's Experience with Inflation Targets and a Flexible Exchange Rate: Lessons Learned (speech)
Monetary Policy
The framework
Flexible exchange rate
Canada's flexible exchange rate permits us to pursue an independent monetary policy suited to the needs of our own economy and acts as a "shock absorber." More information:
Why Canada Needs a Flexible Exchange Rate
Working paper by John Murray, 1999.
Daily, monthly, and annual exchange rates
Data: Canadian dollar vis-à-vis foreign currencies.
A History of the Canadian Dollar
Book by James Powell.