the government shared this preoccupation, as evidenced by the 1945 federal white paper on employment and income. things started to change in the late 1950s and early 1960s, when economists led authorities to believe that there was a permanent trade - off between a little bit more inflation and a little bit less unemployment. all authorities had to do, it was believed, was pick their preferred point on a downward - sloping phillips curve. but the bitter inflationary experiences of the 1970s and a belated recognition that the phillips curve might be vertical in the longer run - if not slightly upward sloping eventually led to an increased focus on price stability as the goal for monetary policy. we began to appreciate what olivier blanchard calls the " divine coincidence " - that is, the realization that aggregate demand - supply equilibrium and price stability are complementary objectives. we've realized that a low, stable, and predictable inflation rate is probably the best contribution a central bank can make to the economic welfare of the nation. since inflation was viewed as being " everywhere and always a monetary phenomenon, " monetary aggregates were used as intermediate targets. but eventually, they proved to be an ineffective anchor. as gerald bouey said, we didn't abandon monetary aggregates, they abandoned us. and so, at the beginning of the 1990s, in the search for a new policy anchor, central banks started to focus directly on inflation, either through implicit or explicit inflation targets. monetary policy transmission and policy effectiveness the instruments that we have used for the transmission of monetary policy have also changed over the years. in the first 35 years of the bank's existence, we relied on a " belt and braces " approach to policy execution, in the belief that credit was fungible and that every possible financial avenue had to be covered. the result was a complex mix of primary and secondary liquidity requirements, interest rate ceilings, quantitative limits, outright restrictions and prohibitions, foreign exchange market intervention, and when all else failed - a healthy dose of moral suasion. attempts to describe the conduct of monetary policy turned into a bewildering stream of arcane details that left listeners confused or - it was sometimes hoped - in awe of the economic alchemists who plied this mysterious craft. this started to change in the 1960s, particularly following the royal commission on banking and finance in 1964, chaired by chief justice of ontario dana porter. it would be hard to overestimate the impact of this analysis, and the sea change in official thinking

. that is easy to say, but devilishly tough to achieve. knowledge sharing is difficult even within a homogeneous organization. sharing information and expertise across separate and independent organizations is even harder. but it is critical if we are to succeed. the rcmp's creation of the strategic priority of economic integrity is a tremendous step towards achieving that goal, for two reasons. first, this initiative is the vehicle by which your internal resources can be mobilized. the imets are an excellent example of this and i'm confident that the icets will be, too. second, this initiative will become the conduit for sharing knowledge, information, and resources with other partners, including the bank of canada. through a well - organized partnership, we can succeed in our goal of enhancing and preserving the economic integrity of our country. on behalf of the bank of canada - and i'm sure that i speak for securities commissions and other market regulators on this - let me say that we appreciate your efforts, and that you have our full and enthusiastic support. conclusion everybody in this room is committed to making canadians secure, in their homes, in their communities, and in their business and working lives. as we do so, it is imperative that we continually remind ourselves that crime extends beyond the physical. economic crime is harder to investigate and to prosecute. but it is every bit as damaging to the well - being of canadians, and it is just as important to fight it with all of our effort. that's why i applaud your decision to make economic integrity a strategic priority. and i renew the bank of canada's commitment to work together with the rcmp and all enforcement agencies to help make the canadian economy a safer place for investors, for businesses, and for all of our fellow citizens.