- bailout clauses : the swiss experience. bis central bankers ’ speeches way of referendum, which increases its binding force, as violations explicitly run counter to the will of the people. incidentally, we can gain even more detailed insights from the cantonal fiscal rules, which are now in place in nearly all the country ’ s cantons. available research reveals that stricter cantonal debt brakes also prove to be more effective. 10 by revising the stability and growth pact and the fiscal compact, the euro - area member states have also changed the rules. this served as a counterweight to the introduction of the substantial rescue packages. however, it appears that little remains of the original intention to tighten the fiscal rules. although it is now much more difficult for finance ministers to turn down the commission ’ s recommendations, the commission ’ s influence has also significantly increased. and that is not always a positive thing either. the rules, on the whole, have hardly any logic to them, and the commission does not always seem to want to apply a narrow interpretation. but we are learning from the swiss example that the rules need to be strict. i believe that flexibility in interpretation should only be applied, if at all, in well - founded exceptional cases. for this ultimately weakens the structural consolidation requirements and defers them to the future. 5. conclusion ladies and gentlemen, this brings me to the end of my speech. with its decision in favour of substantial government bond purchases, the eurosystem has once again provided ex ante assistance. governments and the european commission must now use the time to strengthen the long - term conditions for growth in the euro area. friedrich durrenmatt once said, “ the quickest way to clear up a matter is through dialogue ”. therefore, i now look forward to our discussion. see feld et al ( 2013 ). bis central bankers ’ speeches

david dodge : views on the canadian economy and monetary policy opening statement by mr david dodge, governor of the bank of canada, to the standing senate committee on banking, trade and commerce, ottawa, 3 may 2006. * * * good afternoon, mr. chairman and members of the committee. we appreciate the opportunity to meet with this committee twice a year, following the release of our monetary policy reports. these meetings help us keep senators and all canadians informed about the bank's views on the economy, and about the objective of monetary policy and the actions we take to achieve it. when paul and i appeared before this committee last october, we said that the global and canadian economies were continuing to grow at a solid pace, that our economy appeared to be operating at full production capacity, and that it would remain at capacity in 2006 and 2007. total and core inflation were projected to average close to 2 per cent, beginning in the second half of this year. this projection assumed oil prices at roughly us $ 64 per barrel, a level then indicated by futures prices. our projection also assumed stable commodity prices, government spending that was growing roughly in line with revenues, and a canadian dollar continuing to trade in a range of 85 to 87 cents u. s. in our april monetary policy report ( mpr ), we say that the global economy has shown a little more momentum than had been anticipated : oil prices have been roughly us $ 10 per barrel higher than assumed ; metals prices have risen significantly ; and the canadian dollar had been trading in a range of 85 1 / 2 to 88 a½ cents u. s. in our report, the bank projects economic growth of 3. 1 per cent in 2006, 3. 0 per cent in 2007, and 2. 9 per cent in 2008. total cpi inflation will continue to be volatile and affected by developments in the markets for crude oil and natural gas, and will average close to 2 per cent in 2007 and 2008 ( excluding the effect of any changes in the gst ). core inflation is projected to rise to 2 per cent in the second half of this year and remain there through to the end of 2008. this projection is based on three key assumptions : first, that energy prices will remain roughly as indicated by futures prices ; second, that canadian governments will continue to run budgets that are roughly in balance ; and third, that the orderly resolution of global imbalances will involve a gradual depreciation of the u. s. real effective exchange rate.