5  6  Although Canada was no longer on the gold standard and might have used an exchange rate depreciation to help stimulate the economy, it had a large amount of foreign debt outstanding and a high priority was put on maintaining a stable exchange rate.
At the same time, senior loan officers at commercial banks continue to report weak borrower demand for mortgages and for consumer loans. 8 The fact that consumers are shedding debt is not surprising, as households report a heightened awareness of their debt burden.