recent improvement in job creation, only about half of those jobs have been regained. in canada, on a proportional basis we lost about 40 per cent of the jobs that were lost in the united states. moreover, by early 2011 all of these had been recouped and employment is now 1. 5 per cent above its level at the start of the recession in canada ( and 2. 4 per cent above its level at the start of the recession in the united states ) ( chart 2 ). bis central bankers ’ speeches in canada, as elsewhere, low - income workers were hit hardest by the recession. but with a less - severe contraction in employment and a faster recovery, they fared far better than those in the united states. the unemployment rate for u. s. workers with less than a high school education almost doubled, rising from 10 to 19 per cent. and for younger workers aged 16 to 19, the rise in unemployment was even bigger, increasing from 15 to 26 per cent. by comparison, in canada the unemployment rate among youth and the least educated rose by 4 to 5 percentage points ( chart 3 a, b ). similarly, while canada has not escaped the trend toward higher levels of inequality, inequality in canada is substantially lower than it is in the united states ( chart 4 ). over the past quarter century, economic growth in canada and the united states has been virtually the same, averaging close to 2. 6 per cent. but canada has achieved this comparable rate of growth with less inequality. i won ’ t presume to lecture you on the history of the reforms instituted here in brazil, but i will suggest that the world needs to hear more about brazil ’ s success story. the impact of the changes put in place more than ten years ago is both impressive and instructive. as the brazilian economy became more open to the rest of the world and more market oriented, annual economic growth rose from about 2. 4 per cent in the early 2000s to 7. 5 per cent by the end of the decade. brazil ’ s exports of goods and services, as a share of gdp, increased from 6. 6 per cent in 1996 to 11. 2 per cent in 2010. 2 the most remarkable measure of success is that this step - up in growth was achieved with a declining rate of inequality – proof positive that economic growth isn ’ t inevitably shadowed by a widening gap between rich and poor. inequality peaked in brazil in the 1980s as the economy endured a series of crises,

carolyn wilkins : panel remarks for round table discussion at the 21st conference of montreal panel remarks by ms carolyn wilkins, senior deputy governor of the bank of canada, for round table discussion at the 21st conference of montreal : international economic forum of the americas, montreal, quebec, 8 june 2015. * * * introduction thank you for the invitation to be here today. i ’ m honoured to be part of this panel. it ’ s been more than seven years since the global financial crisis began, and we ’ re still coping with its aftermath. one of the consequences of the crisis has been a disruption of financial globalization. global capital flows – to give just one measure – have fallen by more than half from their pre - crisis peak of over us $ 8 trillion. 1 i ’ ll spend a few minutes on why we ’ re seeing this fragmentation. i ’ ll then offer my views on what we should do to realize the full benefits of financial globalization and manage the risks associated with it. causes of fragmentation the retreat from financial globalization that we ’ ve seen reflects cyclical economic forces, such as the slowdown of global trade and investment. it also reflects structural adjustments, including the deleveraging undertaken by banks to repair their balance sheets and respond to regulatory changes. none of this should come as a surprise, given what we ’ ve been through. on the cyclical side, the crisis has cost the world economy as much as us $ 10 trillion in lost output, or almost 15 per cent of production. global trade slowed, as did the demand for the international financial services that support it. the share of trade in gdp fell after the crisis, reversing some of the 20 - percentage - point increase over the two decades that preceded it. 2 on the structural side, financial institutions that experienced losses during the crisis had to repair their balance sheets by scaling back their lending – not only at home but especially internationally. trade, commodities and infrastructure financing were particularly hard hit. since the crisis, banks have more than doubled the amount of common equity capital they hold. while doing this, banks have tended to focus on their home market and the best ways to allocate capital in the new environment. rules such as anti - money laundering and counter terrorism financing laws may also be altering the terrain. financial institutions have also had to respond to regulatory changes. for example, derivatives dealers appear to be doing more business with domestic counterparties in part because of more stringent, and sometimes inconsistent, rules. 3 while the