in fact, central banks contribute to financial stability. but improved coordination and institutional innovations, while necessary, are not sufficient to make the euro area economy more resilient to adverse shocks. to enhance the adjustment capacity of the euro area economy, the current situation should serve as a catalyst for the resolute implementation of the necessary reforms. this would enable the member states of the eu to fully exploit the benefits of economic and financial integration, with positive effects on growth potential and job creation in the euro area. having said all this, we should not forget how europe would look today without the euro. an issue that was only marginally addressed during the conference. it goes without saying that the euro area countries would be significantly worse off. multiple crises would arise simultaneously. currency crises would go hand in hand with banking crises and real economy disruptions at country level. these currency crises might also spill over to other countries in the region. not to forget political tensions between countries. by eliminating contagion via the exchange rate channel, the euro has mitigated the risk of contagion stemming from national economic or financial crises. in this sense, the euro has been a very important stabilising element in difficult times. it is therefore not surprising that many central and eastern european countries would like to join the euro area on a fast - track procedure to be better shielded from global financial tensions and crises. this is understandable, given that many of them have already made progress towards adopting the euro. but we have also heard clear words of caution. let me take the opportunity to emphasise that the euro area is not a closed shop. following three enlargement rounds since the start of monetary union in january 1999, and with slovakia joining the euro area as its 16th member on 1 january 2009, there is no reason to believe that the door might one day be closed. but there is no shortcut. in fact, the difficulties that some countries face today are related to their failures to adjust, failures that go back a long way. as a result, domestic and external imbalances have emerged, with adverse effects on the sustainability of the catching - up processes in those countries. the fast introduction of the euro would not resolve the underlying problems – but could weaken emu. structural adjustments as well as nominal and real convergence are therefore needed prior to the adoption of the euro. this means that the countries concerned must achieve a sustainable level of nominal convergence at high standards in terms of meeting the convergence criteria. the

canada. the us economy has continued to steam ahead. there is a clear need for the pace of expansion in the united states to slow as we progress through this year and into 2001. prudent monetary management dictates that we in canada do not underestimate the upside risks for inflation, especially given the strong growth of aggregate demand in canada, the united states, and elsewhere. because of a lag of some 18 to 24 months in the effect of monetary policy on prices, the bank is always trying to anticipate inflationary pressures one to two years ahead. productivity growth is the only way to achieve long - term gains in incomes and living standards. the technological revolution that is currently sweeping the world provides canada with a golden opportunity to improve its productivity. the best contribution monetary policy can make to enhancing productivity is to provide a low - inflation environment. low and stable inflation reduces uncertainty about future price movements, lowers the incidence of boom - and - bust cycles in the economy, and helps keep interest rates down. all of this encourages investment in the equipment and software needed to take advantage of the new technology. canada ’ s inflation - control target and the bank ’ s commitment to maintaining that target, should ensure that monetary policy fosters a climate conducive to continued improvement in the performance of our economy.