There is a need for a new international architecture, one that promotes timely and symmetric adjustment. This challenge bedevilled the global economy during the 1930s. It could only be addressed after World War II, during the career of Louis Rasminsky, our third governor. Allow me to provide a little history.
Late in the SDO legislation process a deal was struck whereby SDO loans can be redeemed at par. This provision has limited the scope for product development, and as such it is worth preserving. Under the traditional Danish mortgage system, mortgage loans are redeemable at around par. This is a good arrangement, which safeguards consumers against unpleasant surprises.