The signs of weakness that were seized upon were anomalies; the underlying economy remained very strong, incipient
inflationary pressures were starting to appear, and during this
period our interest rates were raised, as it turned out, more or less by the
same amount as those in the United States.
Over the
same period, the Canadian dollar appreciated from a record low of around 62 cents U.S. to above parity, helping to reduce the
inflationary risks that came with the stronger growth and increased income.