LENS acts as a cross-check for ToTEM, and staff use the two models together to develop their projection and to facilitate a dialogue around policy options. In this way, the Bank is thus managing the trade-off by using two complementary models simultaneously, much as we did with RDXF and SAM.
But ToTEM and LENS are much closer in performance than RDXF and SAM were, reflecting the improvements in the trade-off that I mentioned earlier. Our approach proved to be extremely valuable in late 2014, when Canada was faced with a collapse in the price of oil.