tiff macklem : $ 5 and $ 10 bank note issue remarks by mr tiff macklem, senior deputy governor of the bank of canada, presented to the vancouver train station, vancouver, british columbia, 7 november 2013. * * * good morning friends and colleagues and welcome to this event to launch the new $ 5 and $ 10 polymer notes. i am very pleased to be here in beautiful vancouver, representing the bank of canada. and like the governor, i am proud of these bank notes. they are making history : a first for canada and, indeed, the world. with these notes, canada breaks new ground. they are safer, cheaper, and greener. safer, because all the notes have the same state - of - the - art security features, using holography, transparency and other elements that make them very difficult to counterfeit but easy for everyone, especially those behind the counter, to verify. we are the first – and for now, the only country – to have a hologram within a transparent window on our bank notes. cheaper, because they last longer than paper notes. this means fewer notes will need to be printed and transported, making the series more economical. greener, because over the life of the series, fewer notes will be produced. and when they do wear out, they will be recycled. it ’ s possible that they ’ ll be recycled into new products – products, such as this flowerpot. those are some facts about the new notes. but let me put to rest a few urban myths that have been making the rounds about the polymer notes. my favourite myth is that the notes smell like maple syrup. they don ’ t. so if you get a new bank note and it doesn ’ t smell of maple syrup, don ’ t worry. that ’ s a good thing. and you can rest assured ; there is no chance these notes will melt if you put them on the dashboard of your car. trust me on this. there is a chance, however, that your car might be broken into, so i don ’ t recommend it. starting today, these safer, cheaper, greener, bank notes will be rolled out across canada ; and over time, they will make it into everyone ’ s hands. given the striking imagery on the $ 10 bank note, it is entirely appropriate that we are here on national railway day. this day marks the anniversary of the hammering of the last spike into the railbed in craigellachi

1. 1 per cent. the expansion in both 2017 and 2018 should be about 2. 0 per cent, which is above the growth rate of potential. however, because the output gap is now somewhat larger and will close later than we projected in july, the profile for inflation is now slightly lower. we project that total cpi inflation will remain below 2 per cent through the end of the year and be close to the 2 per cent target in 2017 and 2018. the outlook is clouded by a number of uncertainties. these include the macroeconomic effects of the new mortgage rules, the likely path of our exports, the impacts of the federal government ’ s fiscal measures and the effects of the us election on business confidence. given the two - sided nature of these uncertainties, and with the flexibility inherent in our inflation - targeting framework, we judged that the current setting for monetary policy remains appropriate. let me now talk about the renewal of the inflation - targeting framework. today, the bank and the government announced that we will continue to target inflation at the 2 per cent midpoint of a 1 to 3 per cent range for another five years. this is good news, as our framework has served 1 / 2 bis central bankers'speeches canadians well, in both calm and turbulent times, for 25 years. the framework ’ s track record is impressive. annual inflation has averaged almost exactly 2 per cent since 1991. inflation has also been more stable, which has meant that unemployment and interest rates have become lower and more stable. in turn, this has helped households and firms make spending and investment decisions with more confidence, encouraged investment, contributed to sustained growth in output and productivity, and improved canada ’ s standard of living. as is the case at every renewal, a great deal of research and analysis went into the process, and we took on board the experiences and lessons of the past five years. bank staff published dozens of research papers and worked with researchers from other central banks and academic institutions as well as private - sector economists. and, as usual, we asked some fundamental questions to make sure inflation targeting is still delivering its economic benefits effectively. we examined potential alternatives to inflation targeting to see if they provide even more benefits. that is one of the great advantages of our five - year renewal cycle — the framework is not set in stone ; we are always looking for ways to improve it. now, it is fair to say that even after years of very low interest rates, the recovery from the great recession in many economies