In order to sustain non-inflationary growth, we will need to continue to remove monetary stimulus before the excess supply in the economy is completely absorbed. The pace and extent of this action will depend on the balance of domestic and external developments and on their implications for pressures on capacity and inflation in Canada.
Observations and open issues: resource utilization Against this backdrop, I want to raise some issues where further progress is needed if we are to understand recent macroeconomic events better. Some of these issues have been of concern for some time, and a few are new.