I am particularly pleased to be discussing this issue here in British Columbia where adjustment to changing global and domestic economic developments has been front and centre in the management of your economy. First, I should explain what I mean by flexibility.
As most of you are surely aware, the Bank of Canada has been openly discussing the importance of promoting policies that support economic efficiency, including financial system efficiency. Efficiency refers to the allocation of scarce economic resources to the most productive uses, in a cost-effective way. Flexibility refers to the ability of an economy to adjust to changing circumstances.