Finance committee  Well, I believe that's a very fundamental contributor to that set of opportunities for companies. The Sydney declaration is intended to be aspirational. The fact is that in most countries, fiscal policy has done what it can, monetary policy has done what it can, and growth across the world remains, to some degree, disappointing relative to where we think it could be.

Finance committee  In fact, we don't expect that shortfall to be made up in the near term. Our forecast is based on us having gone down into this deeper level. That wedge will persist, but through time, the growth rate of our exports will converge on the growth rate of the U.S. economy. That will leave this wedge we've discussed in level terms that will persist until such time as the competitiveness challenges in those sectors are gradually overcome or they broaden into other markets.

Finance committee  Yes, household debt is at a historically very high level, so we believe that under current conditions and under our forecast it is sustainable and that it will in fact gradually unwind to more sustainable levels as employment growth spreads and the rest of the economy gets firing.

Finance committee  The household debt ratio is about 165%. Debt service, of course, is extraordinarily low because interest rates are very low at this point. Our belief is that as the economy continues to close the gap and recover, those ratios will gradually improve because exports will take the lead in economic growth.

Finance committee  Yes. The competitiveness equation is something from a company perspective that includes a large number of things, but the economists usually narrow it down to the relative costs of production, and what goes into that mix is any movement in the exchange rate. That would determine the price that you're able to sell, let's say, to an American buyer.

Finance committee  Yes, of course. I would call the member's attention to a background paper which we published on our website last week. It's a four- or five-page piece which summarizes this, so I'll attempt to bring out the highlights for you now. The methodology is not very complex. It's that in our macro models we use to model the entire economy, exports are modelled as a single category or in resources and non-resources.

Finance committee  Thank you very much, Chair. It's a pleasure to be here. I appreciate the opportunity for Tiff and me to be here to share with you some of the highlights from our recent economic outlook. The bank, of course, aims to communicate openly and effectively so that Canadians know how we are achieving our mandate to promote the economic and financial welfare of the country.

Finance committee  If you're asking if a pipeline investment would have impacts across Canada, the answer is yes.

Finance committee  It's pretty far away from monetary policy and inflation. But in respect of consumer well-being and confidence, what we've seen through this cycle is an increase in savings rates. It's clear that consumers' households have responded to that uncertain environment in a way you might expect.

Finance committee  Anecdotally, we know there are pockets of problems; it is very hard for us to put our finger on how general it is. Companies are describing themselves as more or less at the limit of their ability to stretch capacity in response to growing demand in the U.S. That could have two sources.

Finance committee  No, it wouldn't. For us it would be something to add into our analysis of the macroeconomy. We're looking at the bigger picture there, and what it means for economic growth. A substantial fiscal shock in one part of the country can of course affect that projection one way or the other.

Finance committee  You are right, since the pension rates are used as a guide for those interest rates, usually over a five or ten-year period. It depends. We see that the bond rates are increasing slightly. That's a symptom of the natural growth. Mother Nature is behind that. With another forecast, we are confident that the figures will increase in that way eventually.

Finance committee  Yes.

Finance committee  We, of course, have no direct impact on the fiscal situations themselves. They are variable, and it's important for us to take that into account when constructing the forecast. We take government policy however it has been laid out and plug it in to our models. If it changes, then of course we have to change it.

Finance committee  Well, the story you tell is exactly right. In fact, there are really strong cross-sectoral and cross-country linkages of the sort you describe. Spending in one province immediately affects many others. We'll see the aggregate numbers and say it must be because of that. It's not something you can actually trace at that level of detail.