The growing interdependence of national economies, massive capital flows, and new sources of potential risks in a globalized environment have brought into full relief the importance of sound macroeconomic policies and robust and efficient financial systems. Canada's monetary policy approach of inflation targets, a flexible exchange rate, and policy transparency has proven its worth through the difficult times of the past decade.
Canadians can also take pride in a financial system that is universally acknowledged as sound and efficient. To keep it that way, we must ensure that as financial markets evolve, those of us charged with financial stability evolve with them. The Bank of Canada will continue to work closely with its domestic and foreign partners to strengthen financial stability at home and abroad.