The Federal Reserve, under the leadership of the Federal Reserve Bank of New York, has been working with other regulators in the United States and elsewhere, including the Financial Services Authority in London, along with the private sector to strengthen the infrastructures and risk management around these new markets and participants.
In my view, the most important reasons are that the distortions arising from high inflation were more severe in Canada and that the adjustments to globalization and technological change were slow in coming. As a result, Canada had to do more and do it faster. The short-run disruptions associated with the economic restructuring have been significant.