As the decline in the Canadian dollar accelerated through August, medium- and long-term interest rates, including mortgage rates, began to rise sharply at a time when comparable U.S. rates were falling. We took this as a signal of potential loss of confidence in Canadian dollar investments that could prove very costly for the economy.
***  BIS Review 166/2010  1  Now that the Danish banks are emerging from the crisis, it is also time to consider how we can prepare ourselves better for future financial crises. At the end of September the general government guarantee covering the banks’ unsecured creditors expired. Happily for us all, this took place without major problems.