Moreover, among the many papers that had identified global imbalances as creating systemic risks for the global economy, see: IMF (2007): “Staff Report on the Multilateral Consultation on Global Imbalances with China, the Euro Area, Japan, Saudi Arabia, and the United States” – prepared by a Staff Team from PDR, RES and WHD, approved by Mark Allen and Michael Deppler (29 June).
Second, risk can come from unexpected sources. That means we must strive to ensure that the Canadian and the global financial systems are resilient enough to withstand the impact of unexpected events. At the Bank of Canada, we are working on both of these fronts.