as in other countries that have done so, the result has been unambiguously positive. indeed, as claudio borio put it, " no country embracing inflation targeting has regretted doing so. " 2 back in 1991, canada had several compelling reasons for moving to inflation targeting. compared with today, inflation was still relatively high. further, the bank of canada and the federal government wanted to minimize the possibility of a wage - price spiral developing in the wake of the introduction of the goods and services tax. we recognized the importance of having both the general public and financial markets understand our actions. and as inflationary pressures built towards the end of the 1980s, we saw that the lack of a monetary anchor was leading to rising inflation expectations. as we look at canada's record since 1991, in terms of inflation and economic growth, i can tell you that all of the benefits we had hoped would come from inflation targeting have, in fact, materialized. we expected that inflation would become more stable under a targeting framework - and it did so, sooner than we had anticipated. we expected that our credibility would increase and that inflation c. borio, " wrap - up discussion. " the future of inflation targeting, ( sydney : reserve bank of australia, 2004 ) : p. 278. expectations would become well anchored under targeting - and this also happened. indeed, shortterm expectations quickly became anchored to our target, although longer - term expectations took a bit more time to fall in line. together with marked improvements in canada's fiscal position in the mid1990s, our excellent track record on inflation added to our credibility. private sector forecasts for inflation in canada now average close to the 2 per cent target far into the future. we expected that setting out a clear paradigm for operating under inflation targeting would bring benefits - and it did. internally, focusing on inflation brought increased discipline and clarity to our monetary policy deliberations. but more importantly, being transparent about our operational paradigm has allowed markets and analysts to better predict how we will react to different economic outcomes. financial markets and analysts now pay more attention to their own evaluations of the prospects for the economy and inflation in assessing the future path of our policy interest rate. appropriately, they do not have to rely on the wording of our communications for guidance. empirical evidence shows that inflation targeting has been an unqualified success for canada. inflation has averaged very close to 2 per cent and has remained within the target range since we adopted our

eli m remolona : message during the release of the 2023 financial stability report message by mr eli m remolona, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the release of the 2023 financial stability report, manila, 13 february 2024. * * * magandang umaga sa inyong lahat! i thank everyone for making time to join us here in the bsp [ bangko sentral ng pilipinas ] on a tuesday morning. tomorrow is valentine's day, and we will speak about love and roses! but today, let me talk about the danger of rosy scenarios. today, we present to you our 2023 financial stability report ( fsr ) - an fscc [ financial stability coordination council ] communication tool for managing systemic risk. what is our fsr? it is a report published at least annually, pieced together from the collective wisdom of the fscc, from suggestions by the bsp's monetary board and the fscc agency - offices, and from inputs from other participants of our financial system. the reason for the fsr is that we want to communicate to participants of the financial system to help them make better - informed decisions, and maybe tell us what we may have missed. the challenge is that systemic risk is inherently difficult to comprehend. markets are fluid, and things can change very quickly. some risks arise from our own markets and some risks in foreign markets can spill over onto our shores. the risks that are of the biggest concern are those that are brewing in out - of - sight vulnerabilities, risks that turn out to be contagious and to lead to broader dislocations. you have heard of " black swans " indicating highly unlikely surprises or " the butterfly effect " to describe how small things can lead to far - reaching consequences. these are the things we worry about. indeed, financial market participants often make risky investments based on rosy scenarios. the more widely shared the scenario, the more dangerous it is. when something goes wrong in these scenarios, it sometimes leads to mass panic. there is a rush for the exits, causing massive investments to collapse. this is no idle theory. 1 / 2 bis - central bankers'speeches in 1993, the world bank published a volume called the east asian miracle. it told a rosy scenario about our neighbors, including indonesia, malaysia, thailand, and