In 2004 the large external deficit of the United States had a counterpart in the substantial surpluses of the Asian countries, which totaled about $ billion. The surplus of the euro area rose from $ billion in 2003 to about $ billion, or 0.5 per cent of GDP.
Along the way, I'd like to use this examination of core inflation to highlight for you just how important the Bank's research is to the conduct of Canada's monetary policy. Innovative research and analysis related to core inflation, like all our research efforts, underpin the Bank's policy formulation and implementation of monetary policy, and contribute significantly to our understanding of how the economy operates.