Our floating dollar has appreciated sharply and thus, has forced some necessary adjustments. As their competitive positions improved, our commodity producers have been able to absorb some of the resources that were being shed by the noncommodity sectors, which have seen their competitive positions deteriorate. As a result, we've seen a shift in relative wages without fueling inflation.
Thus, the flexible exchange rate has again helped the economy to absorb shocks and has allowed the Bank of Canada to keep inflation near the 2 per cent target. Adjustment is never easy, but on balance, a flexible exchange rate regime has definitely helped Canada to maintain production close to full capacity and to minimize the effects of the boom-bust cycles in various sectors.