Concluding comments I have placed a great deal of emphasis on recent international developments in my remarks today because the implications of these developments for the Canadian economy and the exchange rate are important and complex. Let me summarize my main points.
To ensure public debt sustainability institutional mechanisms must be put in place, and enforced, to impose ceilings on fiscal deficits and public debt. The Euro zone had the mechanisms to ensure public debt sustainability in the Stability and Growth Pact, but they were not properly enforced. In the EAC we are formulating fiscal rules to curb fiscal deficits and public borrowing.