These problems can be overcome, or mitigated, by using suitable operators and techniques to diversify the idiosyncratic risks of debt instruments issued by small and medium-sized enterprises. In Italy emerging credit market tensions have led to the launch, in recent months, of several initiatives for investing in bonds, financial paper and loans of unlisted companies, most of them based on the closed-end fund.
But it is an important relative price in our economy. A floating currency helps us to achieve our inflation target and can act as a shock absorber to cushion our economy from the effects of events both inside and outside Canada. I’ll say a bit more about this in a few moments.