Permit me to elaborate by recounting three challenges that have resonated over the years. BIS Review 29/2010  1  Monetary policy response to global economic crisis First, consider a severe, synchronous global recession, triggered by a financial crisis at the heart of capitalism. Commodity prices crash, protectionism is on the rise. There are bank failures around the world, although not in Canada.
Confirming this impression, purchasing managers in the manufacturing sector reported in January that inventories in the hands of their customers had risen to excessively high levels. As a result, a round of inventory rebalancing was undertaken, and the slowdown in the economy that began in the middle of 2000 intensified.