This has, no doubt, been an important factor behind the surge in business investment in Canada since 1996, which is so important if we are to take advantage of new technology and enhance our ability to compete internationally. Low interest rates have also encouraged households to buy houses, cars, and other major consumer goods—purchases they had tended to postpone earlier in the decade.
The role of monetary policy I have left a detailed discussion of the role of monetary policy (and of the Bank of Canada) for last. To explain the role of monetary policy through the 1990s, I need to go back to the 1970s and 1980s.