Comprehensive financial regulation is required, but comprehensive financial regulation is not the same as unified financial regulation. Looking around this audience today, I see evidence of the fragmented American financial regulatory system.
Our inflation-targeting framework did not restrict our ability to act. Indeed, because our framework is transparent, financial markets were able to appreciate why we made these rapid rate adjustments. The Bank of Canada focuses on inflation at the national level. This can lead to suggestions that some of Canada's regions may not have the appropriate policy for their particular circumstances.