exception of government spending, all major components of aggregate demand declined. at its worst, industrial production fell 15 per cent. canadian exporters suffered particularly, owing to the sharp fall in the components of u. s. economic activity that matter most for canada. for example, u. s. demand for motor vehicles fell by more than half and housing starts by twothirds. 1 in response to this new profile of u. s. demand, major canadian industries ( particularly the automotive and forestry sectors ) began deep restructurings, which continue to this day. overall, the bank ’ s trade - weighted measure of u. s. activity fell by 22 per cent. in this light, the 20 per cent drop in canadian exports is less surprising. the recession has had a considerable impact on employment. at its depth, 400, 000 canadians lost their jobs and the unemployment rate spiked by almost 3 percentage points to its highest level in more than a decade. although the deterioration of the labour market appears to have stopped, too many canadians who want to work are still out of a job, and many of those still employed are working fewer hours than they would like. as painful as our recession was, canada has suffered less than most other advanced economies. domestic demand, fixed capital investment, and employment in canada all held up substantially better than in the united states. real gdp fell cumulatively by 3. 3 per cent in canada. that compares with declines of just less than 4 per cent for the united states, about 5 per cent for the euro area, 6 per cent for the united kingdom, and more than 8 per cent for japan. canada ’ s better performance can be explained by two factors. first, with a highly credible monetary policy and the strongest fiscal position in the g - 7, canadian policy - makers were able to respond swiftly and effectively with extraordinarily accommodative measures. the bank of canada began cutting interest rates in december 2007 and proceeded with a series of aggressive reductions until our key policy rate reached one - quarter of one per cent in april of last year, the lowest it can effectively go. further, the bank then provided extraordinary guidance on the likely path of interest rates necessary to achieve the inflation target in order to maximize the monetary stimulus from its policy rate. fiscal stimulus has already been substantial and will continue to have an important impact on growth this year. second, canada entered the recession with notable advantages, including a well - functioning financial system, strong corporate balance sheets,

david dodge : the new canadian $ 50 banknote remarks by mr david dodge, governor of the bank of canada, to the nation builders dinner, famous 5 foundation, calgary, 13 october 2004. * * * good evening. i am very glad to be here tonight. this has been an exciting day for the bank of canada. this morning, we unveiled a new $ 50 note that celebrates nation building : shaping the political, legal, and social structures for democracy and equality. as you know, one of the events and themes commemorated on the new $ 50 bank note is the persons case. i am especially pleased to be here tonight, helping to celebrate the 75th anniversary of that historic case, and honouring the famous five, who helped to enshrine the rights of all individuals, in canada and other countries around the world, to participate on equal terms in political life. like the persons case, the new $ 50 note is about more than the rights of women to participate in public office. this new bank note celebrates the ability of individuals to make a profound difference and to help make canada a country where rights and freedoms are secure. that is why we have also included on the new note a tribute to therese casgrain, a pioneer of civil rights in canada. through her involvement in provincial, national, and international organizations, therese casgrain worked to help the disadvantaged, improve the rights of women, and reform society for the benefit of all citizens. in honour of this remarkable canadian, the therese casgrain volunteer award medallion, pictured on the back of the note, celebrates canadian volunteers who advance a worthy cause and contribute to the well - being of their fellow citizens. we were honoured to have renee casgrain - nadeau, therese casgrain ’ s daughter, help us to unveil the $ 50 note earlier today. and i ’ m very glad to see members of the casgrain family here tonight. above all, the $ 50 note celebrates the right of all people to participate fully in society and to enjoy the benefits of living in a culture that protects their individual rights and freedoms. that is why we have included on the $ 50 note a quote from the universal declaration of human rights : “ all human beings are born free and equal in dignity and rights. ” these rights help to shape and advance a democratic society. and it is through a nation ’ s laws and public institutions that these rights are supported and protected. the bank of canada has played an integral role