7  See J. F. Helliwell, “From Flapper to Bluestocking: What Happened to the Young Woman of Wellington Street?” Bank of Canada Review (Winter, 2005–2006): 31–39. 8  See Bank of Canada, “Revisions to Potential Output,” Monetary Policy Report (April 2009): 12. 9  New Zealand was the first country to adopt an inflation target, doing so in 1990. Canada followed, 11 months later.
BIS Review 29/2010  3  counterparty defaults across financial systems. The shock spreads globally, threatening market functioning and financial stability. This is the story of Bankhaus Herstatt, a mid-sized German bank, active in foreign exchange markets, that failed in 1974 during the first oil shock.