david dodge : canadian monetary policy in an evolving world economy remarks by mr david dodge, governor of the bank of canada, to the canadian chamber of commerce, calgary, alberta, 20 september 2004. * * * good afternoon. i'm glad to be back in calgary. we at the bank of canada welcome these opportunities to get out across the country, to speak to business people, and hear your perspectives on the economy. the feedback we receive from businesses from coast to coast is an important part of our monetary policy deliberations. i know that the staff of our regional office here in calgary work hard to stay on top of local business conditions on the prairies, as do our other offices for their regions. i am happy to have the opportunity to meet with the national body of the chamber of commerce. i can tell you that my regular contacts with the ottawa liaison group are very valuable to me. the bank does look to the chamber to help us understand how economic developments are unfolding at the industry level. and i particularly want to thank the chamber for being an ongoing partner in our efforts to smoothly introduce three new high - denomination bank notes this year. this is the second straight year in which we have set up a currency - education kiosk at your annual meeting, to help spread the word about our new bank notes. you can learn about the security features that we have included in our high - denomination notes. and we have materials about our new $ 20 note that we unveiled last month, and which goes into circulation beginning next wednesday, 29 september. i should add that i'll be back here in calgary on 13 october to unveil the new $ 50 bank note, which goes into circulation beginning in mid - november. during the past year, powerful forces have continued to shape the global economy. alberta, and indeed all of canada, have felt the impact of these forces. of course, the evolution of the global economy is not a short - term event. some of the forces currently at work have been building for years. similarly, today's developments may have repercussions, and raise the need for adjustments, for years to come. so today, i want to talk about canada's economic outlook and the prospects for monetary policy within the context of the evolving world economy. how the monetary policy framework works i will start with a brief review of our monetary policy framework. let me remind you of the goal of canadian monetary policy. experience has taught us that the

, who have driven work on this project forward, and without whom this event here, today could not have taken place. so what are the objectives of this seminar from our point of view? • first, it should be a platform for an exchange of views between central banks of the mediterranean region and central bankers of the eurosystem. this seminar should enhance the eurosystem ’ s knowledge of the economies of our mediterranean neighbours, and provide the central banks of the region with an opportunity to become more familiar with the eurosystem. • second, this seminar is not a one - off event. we see the potential for regular and active dialogue in the region. therefore, it is also an opportunity to elaborate on the main features of future cooperation. • third, but by no means least, this seminar offers a unique opportunity to strengthen professional and personal relationships between all central bankers of the region. part of the region is haunted by conflicts, which impact the economies. all the more reason, i believe, for us as central bankers to develop professional relations and encourage active and constructive dialogue. i would like to encourage all of us to make the best use of this opportunity by participating actively in the seminar with frank, open contributions. i look forward very much to our discussions. thank you.