While closed mines can be re-opened fairly quickly, regulatory requirements and the time it takes to build infrastructure mean that it can take more than a decade for a new mine to go from exploration to production. Thus, the rise in potential output from this latter source will occur slowly.
Modeling changes in the terms of trade The Bank's interest in understanding how terms-of-trade movements play out in the economy is not new. For decades, the Bank of Canada has monitored the effect of swings in the terms of trade on real income and on the external value of the Canadian dollar.