The public sector has also begun its own adjustment process recently. Such restructuring is by no means easy. But the changes that have taken place have made a number of Quebec’s industries (telecommunications, office equipment, aircraft, construction) highly competitive. And all of these changes should provide this province with the base for a better economic future.
I believe that the emphasis of Canadian monetary policy on low inflation, which has contributed to greater economic stability and low interest rates, is supporting the adjustment process in the Quebec economy. Why is the Bank optimistic about Canada’s economic prospects? The difficulties associated with the economic transformation in Canada have no doubt acted as a drag on output and employment.