Not only have these exports contributed directly to the rapid economic expansion in Canada, they have been a source of encouragement that has added to the surge in purchases of machinery and equipment by Canadian businesses. And, of course, the recent gains in employment and incomes in the export sector have strengthened the momentum of spending by Canadian households.
In the meantime, however, the PBC “expanded its balance sheet” by increasing the scale of central bank lending, central bank discount and adopting other monetary policy instruments.