If policy adjustments intended to deflate asset prices or credit expansion only reduced inflation and output without affecting the bubble, they will have ultimately moved the economy further from its sustainable path when the bubble  BIS Review 143/2009  3  breaks. And if large adjustments are necessary to damp speculation, medium-term variations in the economy will be commensurately greater.
I want to particularly thank Professor Switzer for inviting me to speak here at the John Molson School of Business. I grew up in Montréal and this occasion is a sort of a closing of a circle for me. My first speech as Senior Deputy Governor was here in Montréal and this will be my last.