We also point out that the Canadian economy continues to adjust to global developments and to the associated changes in relative prices. As I said at the beginning, world economic growth will remain robust—around 4 per cent this year and next.
Evidence confirms transmission through the active asset price channel and exchange rate channel. According to this study, monetary policy shocks impact real output after a lag of 7 to 11 months. Tasneem and Waheed (2006), on the other hand, investigated whether different sectors of the economy respond differently to monetary shocks.