carefully and analyse them. in the wake of the financial crisis, regulation has altered financial markets and the money market. particular examples that spring to mind are new provisions governing market risks, limitations on proprietary trading, and supervisory regulations effectively making many transactions more expensive. banks are complying with the new regulatory provisions. this means that banks – in particular large banks – are scaling back their activities in the money market. it remains to be seen whether other market participants – for instance, insurers or large mutual funds – gain a role in intermediation. a look at these five areas – the money market, new players, fragmentation, digital innovation and regulation – shows that they have all altered the financial markets – and the changes have been too many to mention here today. but one thing is clear : the new regime in the financial markets has yet to be put to a serious test over a full economic cycle. we do not yet know what further effects and changes lie ahead, even if we closely monitor the processes and circumstances. the “ new normal ” in the financial markets is, as such, a “ work in progress ”. resume 2 in conclusion, a central bank ’ s monetary policy has a direct impact via the financial markets, their structures and their players. this environment – monetary policy ’ s ecosystem – has changed. and it will go on changing. some of the changes were triggered by the financial crisis and the central banks ’ and regulatory authorities ’ crisis policies. other changes have emerged independently and follow major trends, such as digitalisation. to ensure that monetary policy decisions are successfully implemented in the market and in the real economy, it is crucial to understand market structures. we are thus following and analysing these processes carefully. if changes in the financial market are a “ work in progress ”, this ultimately means that the analysis of how monetary policy is transmitted to the financial markets is a “ work in progress ”, too. we are convinced that a central bank should be independent and committed solely to its objective of 5 / 6 bis central bankers'speeches ensuring price stability. it should not attempt to reshape financial markets and banking beyond this remit. during the crisis, central banks stepped into the breach with their emergency measures – like it or not. now, with the impending exit, we must engage in lively debate on controversial topics concerning fundamental issues of monetary policy. which strategy is the most fitting? which transmission measures are effective? discussions have been underway in the united states for some time

points per year, or about $ 4. 5 billion, if interprovincial trade barriers were lowered. this would include harmonizing regulations on all manner of things. in a time of slow economic growth, that is too good an opportunity to pass up. conclusion it is time for me to conclude. clearly, there are challenges in the canadian and global economies that we need to manage. but there are clear signs that canada is adjusting to the challenges. after taking into account the economy ’ s structural adjustment to lower oil prices that is still going on, we can see many areas of encouraging economic growth. these are both traditional and cutting - edge, and are exportoriented. canada ’ s portfolio of trade agreements should serve us well as this story unfolds, despite the uncertainties the world faces today. 5 / 6 bis central bankers'speeches that being said, it is clear that the global economy is performing less well than we believed only a few months ago, and canada is feeling the effects. in addition, our housing sector is taking longer than previously expected to digest the combined effects of stricter mortgage guidelines and higher interest rates. that is why we said at our last interest rate announcement in march that the economic outlook continues to warrant a policy interest rate that is below the neutral range, to help the economy work through this downshift in growth and keep inflation close to target. recent economic data have been generally consistent with our expectation that the period of below - potential growth will prove to be temporary. our next interest rate announcement and monetary policy report will be released on april 24, and i can promise a fuller analysis at that time. for now, let me thank you for your kind attention, and for your wonderful hospitality here in iqaluit. 6 / 6 bis central bankers'speeches