Further, there are still too many barriers that prevent workers in one province from moving to a job in another province. Labour market churn is a highly complex process that is difficult to predict. So is the creation of new economic supply through investment prompted by strong demand or new firm creation.
But it should be clear that there are likely to be significant economic benefits associated with allowing the economy to find its way to a higher, more productive economic equilibrium, if this can happen within our inflation-targeting regime. We cannot know in advance how far the capacity-building process can go, but we have an obligation to allow it to occur.