Industry committee  That's a very good question. I'll apologize because I know we don't have a great deal of time, but I think this really is a very important issue you've raised. Let me start off by saying, first of all, that what we have seen in terms of the adjustment taking place in the Canadia

Industry committee  As a central bank, we try not to give personal advice.

Industry committee  Thank you very much, Mr. Chairman. We are pleased to be here with you today. We hope we will be able to help your committee as it examines the impact of exchange rate movements on the Canadian economy. As you noted, with me is John Murray, who has recently been appointed as a de

Finance committee  Very quickly, once that came to light, we took measures to investigate it thoroughly through our internal audit department. There were some internal controls that were not pursued leading to this theft, and I'm certainly satisfied that corrective measures have been taken to avoid

Finance committee  Let me address this issue of hollowing out, because it is important to get the facts around this issue. There have been a couple of quite good studies recently. One was by the Institute for Competitiveness and Prosperity--this is the Martin institute, out of the Schulich school

Finance committee  I don't have a breakdown by sector, but certainly the Martin study looked at it across various sectors. What you're getting is this globalization showing up in the high-tech sector, health care, health services biotech. You see those sectors that have grown in importance in the C

Finance committee  The study, as I said, looks at the presence of Canadian companies globally today compared to 10 or 15 years ago, and what you're seeing is that the number of Canadian companies operating globally has increased across a broad sector of areas.

Finance committee  Yes. As the governor indicated, we need to be forward-looking. Monetary policy works with lag, so any change of interest rates today, for example, would have an impact on the economy and on inflation, a full impact, only out 18 to 24 months. So we need to look ahead. What we do

Finance committee  Very simply, there are two ways of measuring prices. One is a consumer price, such as the consumer price index, so it represents the increase in prices for a basket that is deemed to be representative. The other way of measuring prices is in terms of producer prices, the price of

Finance committee  The prospect of a higher inflation rate in China is very real. The scenario of a fixed exchange rate accompanied by a stockpiling of cash reserves could lead to a higher exchange rate and, consequently, to a stronger yuan owing to an increase in the inflation rate.

Finance committee  It's important to control the inflation rate in Canada because, recently, Canada's inflation rate has been lower than the US's. In real terms, the dollar is relatively stable.

Finance committee  If I could just quickly add something, the other point here is to keep a perspective on what's happening to the global economy overall. The fact that we have a rather robust global economy, notwithstanding the slowing in the U.S., of course, has important implications for Canada

Finance committee  Broadly, I think the importance of seeing trade continue to grow globally is a critical issue. The governor talked about it in terms of the reverse, where the risks of protectionist pressures will take hold if the world economy doesn't move forward in terms of dealing with some

Finance committee  Perhaps I can respond to that. We do track these credit numbers very, very carefully, both household credit and business credit, in terms of other indicators that we look at, in terms of the overall performance of the Canadian economy. In the case of the household sector, in look

Finance committee  No. In terms of overall growth rates, we see exports rising, but not at as rapid a rate as imports are growing. Going back to one of the earlier discussions about the strength of domestic demand in the Canadian economy being one of the main drivers, linked to it has been a fair