Finance committee  We can come back to it, because there are five main thrusts of what we're doing on shadow banking.

Finance committee  Okay. Well, first, for some quick context, most of the focus of regulatory reform has been on the regulated banking sector. The other half, though, of the financial system is the so-called shadow banking system. Our objective here is to turn that from something that exists in the shadows to something that has full daylight, from a pejorative term—shadow banking—to something that has a more neutral term: market-based finance.

Finance committee  Okay, let me—

Finance committee  Yes, a few small items. I'll do two and three and then pass to Mr. Macklem for the first one, although we may need to come back. Just as it is for governments in Europe, the United States government, and the Canadian federal government, it's important that all our provinces are on sustainable fiscal paths.

Finance committee  The situation in Europe remains challenging, without question. We welcome the measures that European authorities have taken to improve economic governance, to put in place a fiscal compact, the major structural reforms that have been taken and are agreed and are beginning to be implemented in Italy and Spain particularly.

Finance committee  This is a decision of the Government of Canada, not the Bank of Canada, as you can appreciate. One of the major issues was highlighted by the previous question, and that is the structure of conditionality—the way money has been dispersed and potentially will be dispersed in future programs.

Finance committee  Yes, we share a numismatic obsession, I guess, is the point. It's a pretty small club, but we're there. The first thing in terms of the study is we can provide that to the committee, if it's of interest. We provided the core conclusions of it to the Senate committee that studied this issue a few years ago.

Finance committee  Yes, I'll answer very quickly and then maybe we should return. This is an unusual situation. It grows out of the fact that European authorities are providing, in the program countries—Ireland, Portugal, and Greece—about two thirds of the funds, and one third is coming from the IMF.

Finance committee  All of the above, and even more, if I may. What I was trying to do in that speech was address some of the broader implications and the broader opportunities Canada has on the export side through the diversification of trade. Let me go to the core of your question. If we look at the resource sector as a whole, it's a little more than 5% of employment.

Finance committee  It's part of the adjustment. But as you referenced in your initial remarks, other mechanisms spread the returns across the country, including through other revenues of the federal government that come from these resource developments and through upstream suppliers and potentially through infrastructure, which isn't necessarily just export-oriented infrastructure but could be pan-Canadian infrastructure as well.

Finance committee  As I just explained, the advantages would be increased productivity in resource utilization. This is an immediate and direct benefit here, in Canada. This is also an opportunity for the export of this skill and the products associated with it. Nearly 85% of all resource market opportunities are found in the emerging countries.

Finance committee  Thank you. It's an important question. That's absolutely right. Let me start by acknowledging that because we are blessed, as you said, with immense natural resources, the prices of our energy exports and our base metals and other agricultural exports are all important factors, but they are only one set of factors that determine over time the fundamental value of the currency.

Finance committee  As regards this situation, to a certain extent, we can sum it all up with the issue of Dutch disease. Several people have already spoken about this issue. First of all, I think that everyone would agree that natural resources have given Canada some excellent opportunities. Secondly, we must recognize that having a weaker currency does not comprise a plan, it is a hope.

Finance committee  You have asked another important question and perhaps we may have more time to discuss it another time. According to the bank, we are going through a period where commodity prices will remain high for a long time, this being caused primarily by the transformation of emerging countries.

Finance committee  Thank you. That was the august Deputy Governor Boivin at the Economic Club.... No, I'll get the adjective in the right place. This is a serious issue, as you know, which is why this committee and others have spent time on it. I think you personally have spent time on it. Without question, this sharp shift in demographics is coming.