would be in a position today to issue long - term, fixed - rate, peso - denominated bonds at such narrow spreads over u. s. treasuries? fiscal policy is also important. governments must behave in a fiscally responsible manner. that doesn't mean that the books must be perfectly balanced each and every year. but it does mean that governments must maintain, and be committed to maintaining, a manageable debt - to - gdp ratio and avoid running up debt that will tie the hands of future governments. conclusion let me conclude by going back to where i started my remarks. i have spoken about how a liberalized, global trade and financial order is important for promoting economic growth and prosperity. and i have focused on the importance of a floating exchange rate regime, which is a key element in promoting good performance, both domestically and globally. for systemically important countries, we should be promoting floating rates supported by well - developed and well - functioning domestic financial markets. but it has to be acknowledged that it can take some time for emerging - market economies to put these well - developed markets in place. and along the way, some management of capital flows and a degree of intervention in foreign exchange markets may be needed, in these economies. these capital controls and foreign exchange interventions are awkward, and over time, they can lead to a lot of problems. so they must be eliminated as quickly as possible. but, to the extent that countries are making progress towards more flexible exchange rate regimes, those of us with well - developed markets already in place will have to have some tolerance for this awkwardness. and those of you in the aci will have to continue to trade in this somewhat awkward environment. in the meantime, i can say that we at the bank of canada will be doing all that we can to provide assistance and to persuade countries in transition to move as rapidly as possible, to facilitate the desired convergence.

tiff macklem : release of the monetary policy report opening statement by mr tiff macklem, governor of the bank of canada, at the press conference following the release of the monetary policy report, ottawa, ontario, 14 july 2021. * * * good morning. thank you for joining me to discuss today ’ s policy announcement and the bank ’ s monetary policy report ( mpr ). my message today is twofold — of increased confidence and of continued attention. a year ago, at the time of my first mpr as governor, the economy was in a very deep hole. we were just coming out of the first wave of the virus, more than two million canadians were unemployed, and inflation was well below our 1 to 3 percent target range. uncertainty was extremely high. vaccines were being developed, but nobody knew when they would be available or even if they would prove effective. since then, a lot has happened. we have endured two more waves of the virus, and this has held back recovery. but thanks to the resilience and ingenuity of canadian households and businesses, and exceptional fiscal and monetary policy support, the economy has continued to grow. it has been choppy and very uneven, and everyone has had to cope with a lot of uncertainty. but the economy has proven to be impressively resilient. and now highly effective vaccines have arrived. with cases falling, rapid progress on vaccinations and easing containment measures, the governing council is increasingly confident that growth will rebound strongly as the economy once again reopens, and this time growth will be more durable. second, as the unique circumstances created by the pandemic continue to evolve, there is continued need for careful attention to the dynamics of the recovery and inflation. globally, the economic outlook remains highly dependent on the course of the virus and new variants are a concern. in canada, we still have some way to go to a complete recovery, and the rebound in economic activity will proceed at different speeds across sectors. the process of reopening the economy won ’ t be entirely smooth. for example, we are experiencing supply bottlenecks for some goods and services as demand rebounds faster than supply can ramp back up. these unique circumstances of the pandemic are now helping to push inflation temporarily above our target band. as we reopen the economy, we expect to see some volatility, and we will continue to pay close attention to the progress of the recovery and to the evolution of