But many Canadians are still struggling to manage the rising cost of living, and prices of many things that people need to buy are still rising too quickly. Food price inflation is just under 10%. We expect food price inflation to come down in the months ahead, but services price inflation will take longer.
Lehman Brothers was a prime example of this: a patchwork of cross-border and cross-entity interdependencies. Lehman’s insolvency resulted in over seventy-five separate bankruptcy proceedings. When it collapsed, the group was party to over nine hundred thousand derivatives contracts. When the crisis hit, it was unclear which party owed what to whom. The resulting insecurity caused even more panic on the financial markets.