Kevin Carmichael, "Recovery still has a long way to go," Globe and Mail, June 11, 2009.

Bank of Canada Governor Mark Carney says the world economy is surviving largely on government life support, underlining the central bank's view that recovery from the recession will be long and muted.

Speaking at the Conférence de Montréal, Mr. Carney said “more capital” will be required to put the world's banks back on solid foundations, and that a healthy financial system is a prerequisite for a rebound. That will come, but not before many more people across the Group of Seven richer countries lose their jobs, the Governor said.

A sustained rebound will depend on the U.S. saving more and countries such as China consuming more. If that doesn't go smoothly, Canada's currency will remain volatile, hindering exporters' prospects.

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