If the financial system were to lose any of these capabilities because of excessive volatility, the Bank of Canada would be concerned, mainly because of the potential for detrimental  1  See, for example, Kenneth Rogoff. 2006. "Impact of Globalization on Monetary Policy." BIS Review 107/2006  1  economic consequences.
As a central bank, we tend not to worry about financial volatility for its own sake, but about the potential financial instability and economic cost of excessive financial volatility. So, in a nutshell, both macroeconomic and financial stability are needed to sustain maximum economic growth over the long term. Excessive volatility in either economic or financial variables can exact a toll on the economy.