Speaking to the Board of Trade of Metropolitan Montréal today, Bank of Canada Governor David Dodge talked about the longer-term trends and the challenges facing the Canadian economy in the years ahead, and the adjustments that will be necessary to meet those challenges.

Drawing on lessons learned from past experience, Mr. Dodge said that the flexibility to adjust to change is enhanced by pursuing the right structural and macroeconomic policies. "Along with the right economic policies, a floating exchange rate will help the economy make adjustments more smoothly," he added.

The Governor assured Canadian business people that they can count on the Bank of Canada to pursue the appropriate monetary policy that will help sustain aggregate demand and facilitate the adjustment to a changing world.