Let me start with the issue of the prolonged vigorous expansion of the US economy. This extraordinary performance presents the US monetary authorities with the difficult task of ensuring that it does not lead to overheating and rising inflation. The Americans have already raised interest rates twice over the summer.
What would be the implications for Canada if the US economy does not start to slow and the US central bank has to raise interest rates further? In these days of close global integration, developments in the United States - the world’s largest economy - are bound to have a major effect on national economies everywhere. This is especially true for Canada.