In that regard, I am convinced that this year’s conference will produce further insights into more effective central bank policy making. Thank you. References Borio, Claudio and Haibin Zhu, “Capital Regulation, Risk-taking and Monetary Policy: a Missing Link in the Transmission Mechanism?,” BIS Working Paper No. 268, 2008. Goodfriend, Marvin, “Central Banking in the Credit Turmoil: An Assessment of Federal Reserve Practice,” mimeo, 2009.
Moreover, in recent days, several articles of faith in the financial system have been shaken. These include: that good collateral can always be used to raise liquidity; that certain institutions are too big or too interconnected to fail; or that this was merely a liquidity crisis. However, there is one constant on which Canadians can rely.