In an op-ed for The Globe and Mail, Associate Professor Michael King discussed the significance of oil pricing for Canada and its effect on the Bank of Canada’s monetary policy.
“How important is oil for Canada’s monetary policy? The short answer is “’very’,” said King. “Oil and gas extraction accounts for 6 per cent to 7 per cent of Canada’s gross domestic product and crude oil makes up 14 per cent of exports. But research shows that oil prices are volatile and forecasts imprecise.”
To break down the Bank of Canada’s approach for coping with oil pricing, King also looked at the three key strategies involved: research, monitoring and communication.
