get to the underlying trends in the economy. and, as always, we will look at the complete economic picture as we lead up to our next decision date on 11 july, and we will present that complete picture in our monetary policy report update two days later. conclusion let me conclude. powerful global economic forces have been affecting the canadian economy and will continue to have an impact for the foreseeable future. adjustment must take place. it hasn't been easy, and it hasn't been without pain. and adjustment won't be easy in the months and years ahead. but i'm encouraged to see that most firms are getting on with the job. i encourage you to persevere with these adjustments. for our part, we remain committed to keeping inflation low, stable, and predictable. that is the best contribution we can make to helping output and employment remain strong.

booming demand and have been unable to expand quickly enough, hindered by shortages of skilled labour, outdated machinery, and inadequate infrastructure. on the other hand, some firms have struggled to increase the value - added of the goods they produce in canada in the face of falling prices and global competition. they have had to find ways to shift some activities offshore. this second type of difficulty has been more prevalent in traditional goods - producing industries such as clothing, textiles, and newsprint. in some cases, business owners and employees - who have invested decades of their lives in a particular firm or industry - are coming to terms with plant closures and the loss of jobs. none of this is easy. these difficulties have been plain to see in media reports and in official economic data. however, these same data also show increases in output in sectors such as wholesale trade and financial and business services, as well as manufacturing sectors such as pharmaceuticals and transportation equipment. despite all the challenges, we are seeing businesses across the country being inventive in responding to the necessity of adjustment. we have been tracking this adjustment through our regular communications with business groups, manufacturers, and exporters, as well as through the bank's business outlook surveys. these surveys, conducted by staff in the bank's regional offices, are available on our website, and i encourage you to look at them. since 2003, when the canadian dollar began to appreciate, they have told an encouraging story of how businesses have found ways to innovate and adjust to changing circumstances. the role of public policies but what role is there for public policies in this adjustment process? above all, governments should not try to shield business from global forces, nor should they interfere with market signals. which policies then can support market - based adjustment? at the macroeconomic level, monetary and fiscal policies can facilitate adjustment by promoting stable and sustainable long - term economic growth. i'll have more to say about the role of monetary policy in a moment. on the microeconomic side, let me mention a few areas where governments can act. the first has to do with infrastructure, and there are really two sides to that - human and physical. in terms of human infrastructure, there is a crucial role for government in promoting education and training. ultimately, the strength of our economy depends on the skills of its workforce. obviously, governments should make sure that everyone has the opportunity to receive a sound, basic education. and in the face of shortages of skilled labour, public policies