way to low, stable, and predictable inflation, and inflation expectations are firmly anchored. we both approach the inflation target in a symmetrical way. this helps to smooth the ups and downs of the business cycle and, more generally, has led to stronger economic growth in the long term. how does inflation targeting help in the context of today's global economy? first of all, by reducing uncertainty about the future value of money, a climate of low and stable inflation maximizes the clarity of signals that are sent by prices. this helps businesses to make appropriate investments. further, central banks pursue inflation targeting by adjusting interest rates with the goal of keeping total supply and demand in the economy in rough balance. in doing so, monetary policy can make it easier for resources to shift from sector to sector. this is particularly important in times such as these, when large swings in relative prices highlight the need for rapid adjustments in economic activity. one of these relative prices is the exchange rate. a flexible exchange rate is very useful because it helps the economy adjust to shocks, especially external shocks that affect different economies in different ways. but large movements in the exchange rate can pose difficulties for particular sectors. and it can be harder for policy - makers to keep following the right policies when some important economies are seen to be circumventing what could be called " the rules of the game. " the right international policies i'll come back to this point, and discuss the international financial system in just a moment. but first, let me say a few words about international trade. our reliance on international trade means that both chile and canada have a particular interest in promoting the free flow of goods and services. all countries should be working to push the doha round of multilateral trade negotiations to a successful conclusion and to strengthen the world trade organization in order to ensure proper compliance with the rules of trade. and policy - makers need to be vocal in resisting calls for protectionism. unfortunately, progress on trade appears to be stalled, and protectionism is a real and rising threat. the calls for protectionist action are, perhaps, a natural by - product of today's globalized economy. as the world economy has developed, domestic firms have found themselves having to adjust to global forces much more quickly than in the past. with the globalization of markets has come intense competition in many sectors. without question, this globalized economy has brought tremendous benefits to our citizens. but in the face of competition, policy - makers have heard calls to

purpose of this speech, i am defining “ labour force ” as the working - age population, those aged 15 – 64. 12 see r. a. decker, j. haltiwanger, r. s. jarmin and j. miranda, “ declining business dynamism : implications for productivity? ” hutchins center working paper no. 23 ( september 2016 ). 13 the target for admission of immigrants has been increased from a range of 260, 000 to 285, 000 in 2015 to 300, 000 for 2016 and beyond. in addition, an express entry system was introduced in january 2015, and subsequently widened, to speed up the processing of applications for permanent residency through different programs, such as the federal skilled worker program, federal skilled trades program and the canadian experience class. and on 9 march 2017, the federal government announced a new initiative to help high - growth canadian companies attract specialized global talent by providing more predictable, streamlined reviews and approvals for work permits. these changes are expected to add to labour force growth. 9 / 9 bis central bankers'speeches