The governor of the Bank of Canada, Mark Carney, recently spoke to the Economic Club of Canada, where he discussed the growing financial trends within the country.
Carney said that the ongoing credit crisis in Europe should serve as a lesson for government officials in Canada, reminding them that they must not get into too much debt and adapt to the changing global economy. He also said that consumers would slowly begin to spend more as the economy recovers.
The exchange rates, he said, would also play a big role in the future of the economy.
Structural changes in the global economy will yield important adjustments in real exchange rates. If nominal exchange rates do not change, the adjustment will come through inflation in emerging economies and disinflation in major advanced economies.
In a recent interview with CTV, Carney said that he was worried about household's rising level of debt. A new report found that household debt had risen to 145 percent, based on low interest rates to borrow.
