I'm happy to be here and to assist the Committee, insofar as I am able, in your study on income trusts. I should start by making clear where the Bank of Canada's main interest in the income trust sector lies. Our interest in income trusts relates to the efficient functioning and health of Canada's financial system.
The macroeconomic implications of this different mix of shocks are evident from a number of simple indicators. Inflation, wage cost growth and various measures of capacity utilisation fell quickly in response to the negative demand shocks hitting the US economy in 2000 and 2001.