As the painful lessons of other countries have demonstrated in recent years, price stability is no guarantee of financial stability, and a financial crisis can significantly hamper a country’s ability to deal with challenges such as an aging population. This is why the Bank is contributing to and supporting the G-20 agenda for financial reform.
This is also why Canadian authorities, including the Bank, will need to remain as vigilant as they have been in the past to the possibility of financial imbalances developing. To maintain price stability and support the adjustments to aging across the economy over time, the Bank itself will also have to adjust.