As far as monetary policy is concerned, the key to normalizing price distribution is reducing excess demand.
When the economy is in an excess demand situation and consumers start to anticipate that inflation will be high, the price pattern changes and it's easier to raise prices.
However, the competitive system works much better when we have a better balance between supply and demand. It then becomes more difficult for businesses to raise prices because they stand to lose customers and consumers.
That's why we had to raise interest rates, to better balance supply and demand and also reduce anticipation of inflation. The competitive system will work better, and price setting will normalize.
The Bank of Canada's deputy governor Paul Beaudry is giving a speech today in Alberta, and he will further expand on that.