david dodge : global challenges, canadian opportunities remarks by mr david dodge, governor of the bank of canada, to the office for partnerships for advanced skills annual visionary seminar, ottawa, ontario, 17 november 2003. * * * good afternoon, ladies and gentlemen. let me begin by congratulating opas for its work in advancing partnerships between industry and universities. these partnerships will be increasingly important for canada in the years ahead. let me also say how honoured i am to receive the opas visionary award for 2003. when i look at the list of distinguished business leaders who have received this award in the past - charles baillie and john cleghorn, ted rogers and mike lazaridis, john sheridan and jean monty - i must say that i am absolutely delighted to join them. it ’ s a particular pleasure to receive this award since it marks the first time that it is being given to a person who has made a career in the public sector. this award recognizes that the public sector has an important role to play in promoting the economic health of a country. far too often, people think that the private sector is solely responsible for creating wealth, and that the best the public sector can do is to redistribute that wealth. the reality is far more complex. that ’ s what i want to talk about today : how those complexities give rise not only to challenges, but also to opportunities. in particular, i want to talk about the challenges posed by the globalization of the world economy, and how canadians in the public and private sectors can take advantage of the opportunities that the global economy presents. it is certainly nothing new to say that economies have become increasingly globalized. in his 1962 book, the gutenberg galaxy, marshall mcluhan observed that the electronic mass media were collapsing time and space barriers. this enabled people to communicate on a global scale. he coined the term “ global village ” to describe this change. of course, even mcluhan couldn ’ t have foreseen the developments in transportation and communications that have taken place over the four decades since his book was published. these developments have converted mcluhan ’ s abstract concept into reality. satellite technology gives us live broadcasts from anywhere in the world. ideas are available simultaneously to those who have access to the internet - and that number continues to grow at an exponential rate. as i stand here today, i can talk to, and hear from, thousands of people across the country at the same time. more to

david dodge : economic and financial trends in the context of canada ’ s inflation - control strategy opening statement by mr david dodge, governor of the bank of canada, on the release of the monetary policy report update, 24 july 2002. * * * today, we published our update to the april monetary policy report, in which we discuss economic and financial trends in the context of canada ’ s inflation - control strategy. canada ’ s economic recovery, which began in the last quarter of 2001, gathered momentum in the first half of 2002. over the period to the end of 2003, the bank projects continued solid economic expansion at an annual rate of 3 to 4 per cent. this will result in growth of close to 3 1 / 2 per cent on an annual average basis in 2002 and in 2003. both the total and core rates of inflation are projected to be slightly above 2 per cent in the second half of 2002, before steadying out at close to 2 per cent in 2003. given that the canadian economy grew at a faster pace than anticipated in the first half of 2002, there is now less excess capacity than was projected in our april report. the economy is expected to be operating at full capacity in early 2003 - sooner than previously anticipated. in light of these developments, the bank has continued to reduce the amount of monetary stimulus in the economy, raising the target for the overnight interest rate by 25 basis points on three occasions in april, june, and july - to bring the rate to 2 3 / 4 per cent. it remains the bank ’ s view that the underlying economic situation will require further reductions in the amount of monetary stimulus. the timing and pace of policy adjustments will depend on the strength of the various factors at play and their implications for pressures on capacity, and thus on inflation. there are both upside and downside risks to the outlook for canadian economic growth. on the positive side, growth of domestic demand could turn out to be stronger than projected because of the substantial amount of monetary stimulus still in place. on the negative side, there are the uncertainties associated with global corporate and financial market developments and their potential effects on confidence and world economic growth. at this time, the risks to our projected rate of growth of 3 to 4 per cent growth appear to be balanced. as we go forward, the bank will remain focused on taking actions to achieve the 2 per cent inflation target. keeping inflation low and stable is the best contribution that monetary policy can make to sustained economic growth in canada.