The Globe and Mail reports in its Monday, March 18, edition that the framework agreement governing the monetary policy between the government and the Bank of Canada will expire by the end of 2026. The Globe's guest columnist Claude Lavoie writes that for the upcoming agreement, significant structural changes must be considered to address the continued influence of supply shocks on inflation. Growth has been anemic since the summer of 2023, largely because of monetary policy actions. Mr. Lavoie says such a problem will only get more prevalent as supply shocks are set to increase. This questions the BOC's current governance. Supply shocks by nature put monetary authorities in a bind. A negative supply shock increases inflation and hurts growth. With price stability as its sole objective, the BOC's strategy to fight this inflation is to raise interest rates, but this ends up further hurting growth. Since supply shocks create trade-offs between growth and inflation, having the BOC considering only inflation is problematic given the social costs of lower growth and employment. Other governments have adapted by increasingly giving dual mandates to their central banks, directing them to equally weigh both inflation and growth.