As in the United States in 1991-92, short-term rates in Canada were brought down during 1995-96 from over 6 per cent to about 3 per cent -- their lowest level in over 30 years. At the same time, the Canadian dollar has BIS Review 113/1997  -4-  been relatively low, providing support to the export sector.
When we put interest rates and the exchange rate together -- as we must in order to correctly gauge the amount of monetary stimulus -- it is clear that monetary conditions in Canada have been exceptionally stimulative for well over a year. This was entirely appropriate while our economy was still struggling against the headwinds of private and public sector restructuring.