What I want to do today is look briefly at how the Canadian economy has adjusted so far and talk about what public policies - including monetary policy - can do to promote economic flexibility. Let me start by listing the main global developments since 2000. First, China and India have emerged as economic powerhouses. Second, global economic growth has been extraordinarily strong.
Our focus in this area is even more important as banking becomes increasingly complex and sophisticated and as banking systems become more concentrated. And with the advent of Basel II, supervisors are becoming even more involved in understanding the emerging best practices in risk measurement and management.