Canada is formally a constitutional monarchy, with the governor-general acting as the representative of the British crown. In practice, the Canadian House of Commons is sovereign. Canada is a federation of ten provinces, each with substantial powers, and three territories. The country is located in the Northern North America. It the 18th largest economy in the world (by GDP PPP) and is a major exporter of natural resources – specifically, energy and mineral products. Canadian economy is highly integrated with the United States, which buys 76% of Canadian goods. United States is also Canada’s key supplier of goods, accounting for 52% of total imports. The central bank, Bank of Canada (BoC), pursues an inflation-targeting approach to monetary policy and maintains a free floating exchange rate regime. Canadian dollar is closely correlated with the prices for key export commodities – specifically, crude oil. The risk of housing bubble, sensitivity to commodity prices, and high exposure to the U.S. economy are usually named among key weaknesses of the Canadian economy.