What is more, the progress in information technology, together with the advances in financial liberalisation and globalisation, have brought us increasingly sophisticated financial tools. Financial linkages running between markets and between countries have also deepened greatly. This means that risk factors we have never faced before continue to rise up. In such circumstances, financial stability is not easily attained.
Efficiency and macroeconomic policies Let's examine how Canada's macroeconomic policies support efficiency. As a central banker, I will start with a brief look at monetary policy; in particular, our policy of inflation targeting. As you may know, last month the Bank and the Federal Government renewed our joint inflation-targeting agreement for another five years, until the end of 2011.