First: lending and the problem of credit bubbles; second: funding and what I will refer to as the “financial shield” phenomenon; third: exchange rate policy and its complex interaction with banking internationalisation.
*  *  *  Today, we released our April Monetary Policy Report, which discusses current economic and financial trends in the context of Canada's inflation-control strategy. Growth in the global economy has weakened since the January Monetary Policy Report Update, reflecting the effects of a sharp slowdown in the U.S. economy and ongoing dislocations in global financial markets.