"The vicious circle has been shattered. Canadians now enjoy the benefits of the virtuous circle"

This quote by Paul Martin is referring to the economic cycle of Canada. The "vicious cycle" is a term used to describe a cycle of economic decrease, where a decrease in economic activity results in a decline in customer confidence, which in turn causes a further decline in economic activity. This cycle can be challenging to break out of. Nevertheless, Paul Martin is recommending that the "vicious cycle" has been broken and Canadians are now experiencing the benefits of the "virtuous circle". This is a cycle of financial development, where a boost in financial activity results in a boost in customer confidence, which in turn leads to an additional increase in economic activity. This cycle is much easier to preserve and can cause long-lasting financial development. Paul Martin is recommending that Canadians are now experiencing the benefits of this cycle, which is a favorable sign for the Canadian economy.