More recently, of course, we have seen in this part of the country a strong housing market cycle. The current state and likely future evolution of the housing market in Canada have implications for the economy, financial markets, and policy-makers.
I will describe these implications later, but first I'd like to set the stage by discussing the role of housing in the Canadian economy and some of the factors that drive housing activity and prices. Housing, the economy, and financial markets Housing plays an important role in the economy, with direct and indirect effects on household wealth and consumption.