Increased bank reserves held at the Fed don’t necessarily translate into more money or cash in circulation, and, indeed, broad measures of the supply of money have not grown especially quickly, on balance, over the past few years.
There will be some activities, particularly those that are labour-intensive and lower-value-added, where Canadian firms will not be well placed to compete with lower-cost producers in Asia. The key will be to adjust by shifting resources into expanding, higher-value-added activities, where Canadian firms can exploit the opportunities  2  BIS Review 51/2004  presented by the changing world economy.