Despite having already cut official interest rates in half over the past year and having a financial sector that is still functioning effectively, some further monetary stimulus will likely be required to achieve the inflation target over the medium term. Act locally, think globally This leads to the final lesson from Canada's experience.
The term financial stability is sometimes used in a very broad way to cover objectives and institutions that encompass the stability of the economy as a whole and also include the financial stability of governments, as in the Treaty establishing the European Stability Mechanism or in the title of the European Financial Stability Facility (EFSF).