Thank you very much, Mr. Julian.
I want to take the next round, Mr. Carney. I want to raise two issues with you.
First of all, obviously Canadians are well aware of the strength of our financial system and the strength of our financial institutions. Two of the main factors are our capital ratios and our leverage ratios in terms of the policies that we've adopted in Canada.
You mentioned the Basel III accord, and that there are going to be both higher quality and higher levels of capital. There have been international concerns, American concerns, raised about both, which I think you've responded to very well. In terms of some of the Canadian concerns that I'm hearing, the institutions here are not concerned about the level unless they're asked to do it on an asymmetrical basis. If other countries do not adopt the Basel III levels but Canadian institutions are forced to, how will that impact them? That's one concern.
The second is with respect to the quality. Frankly, they say they're at or near the required levels now, but they do have a concern in terms of whether what they have now in capital is of the same type of quality or how that will be impacted. That's an issue.
A second issue is with respect to core inflation and the 2% target. Most people I talk to do not quibble with the 1% to 3% range or the 2% midpoint, but some do raise concerns with respect to what is actually included in core inflation. Gasoline, natural gas, fuel oil, and mortgage interests are just a few of the variables that are not included in core inflation. So these people ask the question.
Obviously at the bank, you regularly debate what should be in core inflation and what should not. Could you give us some background as to whether you're looking at that specifically now with respect to your core inflation target, or is this something we should look at changing?