This could alter the way in which monetary policy affects the economy. Conclusion Let me conclude. Canada made it through the financial crisis better than most G-7 countries. It was a shock from outside our borders that was sudden and unexpected. The future can deliver surprises. But the challenges of demographic change will not be a surprise.
We’ve known about them for a long time. They are coming our way. As our society ages, we can either accept a lower standard of living or we can be proactive and adjust. The stakes are high and we cannot afford to ignore them. There is no free lunch; somebody will have to pick up the tab.