will be required over time. this outlook is subject to both upside and downside risks and to uncertainties. the risks include the pace of expansion in asia and the prices of oil and non - energy commodities. a further risk relates to the resolution of global current account imbalances. should these imbalances persist, the risk of a disorderly correction would grow over time. most of the uncertainties with respect to the canadian outlook relate to how the economy is adjusting to the relative price changes associated with major global developments. monetary policy continues to facilitate the adjustment process by aiming to keep inflation at the 2 per cent target and the economy operating near its production capacity. mr. chairman, paul and i now will be happy to answer the committee ’ s questions.

you developed the national counterfeit enforcement strategy. as a result of this initiative, it appears that we may soon have specialized integrated counterfeit enforcement teams ( icets ) in place, to fight the serious threat posed by currency counterfeiting. be assured that my colleagues and i applaud and strongly support these vital efforts. however, i know how difficult it is to generate support and funding for these new initiatives. i understand how frustrating it must be to investigate these complicated crimes without adequate and skilled resources or support. and i understand the frustration of police who spend time and resources investigating these offences, only to see the criminals walk away with little punishment because the social costs of their crimes aren't always fully recognized. that's why the bank is working with the law enforcement community on training materials and legal tools to help prosecutors present their cases more effectively. further progress will require a coordinated effort and a multidisciplinary approach. vocal championship by leaders from the public and private sectors is needed if canadians and their governments are to appreciate and support investment in specialized enforcement teams and more effective prosecutions and sentencing. as governor of canada's central bank, it is my responsibility and my intention to do all that i can to increase awareness of the importance of protecting economic integrity. that is why the bank has been, and continues to be, committed to partnering with lawenforcement authorities and other participants in the legal system. challenges in protecting economic integrity you and the bank of canada share a compelling objective : making canada a safe place to earn a living, to do business, and to invest. so, what challenges do we face in this regard? canada has a strong financial system, low and stable inflation, and a healthy economy. our regulatory and governance structures are sound, and they are evolving to meet the challenges of new technology. so are canada's bank notes - they now contain some of the best security features in the world but there is evidence that canada is at risk of becoming a safe haven for opportunistic criminals who deal in white collar crime. this may be because we have lacked an adequately resourced enforcement regime and strong sentencing precedents. it may also be because there is a perception that our markets may not be as safe as they should be, and a perception that our enforcement is not as tough as it ought to be. so we're battling on two fronts : we need to thwart these opportunistic criminals, and we must be seen to be doing