3  See, for example, J. Selody and C. Wilkins, "Asset Prices and Monetary Policy: A Canadian Perspective on the Issues," Bank of Canada Review, Autumn 2004, available at http://www.bankofcanada.ca/en/review/autumn04/selody.pdf. 4  BIS Review 84/2008  that I mentioned, and how innovation affects them, need to be adequately recognized and better understood.
4 A second, and related, challenge is to ensure that innovations in the funding of mortgage finance do indeed make the financial system more efficient and do not threaten financial stability. It is important that investors and financial market participants understand the risks they take on so that they can manage these risks effectively.