First, I’d like to review the Bank of Canada’s actions over the course of the pandemic: what we were trying to achieve, what happened and what would have happened if we hadn’t acted. Second, I want to speak to the concerns many Canadians have about the rising cost of living.
Financial innovation has spurred the development of risk management tools but it has also brought together various other forms of risk into financial products, making the art of risk management even more sophisticated. The rapid growth of derivative instruments blurs the dividing line between the established concepts of Credit risk and Market risk.