mark carney : bank note launch remarks by mr mark carney, governor of the bank of canada, to the mars discovery district, toronto, ontario, 14 november 2011. * * * it is a great pleasure to be here in the mars discovery district, where science and innovation meet. i am here to announce the issue of the new $ 100 bank note which is available, as of today, in banks across the country. we are very proud of our innovative polymer bank notes. they are more secure, more economical, and better for the environment than any we have issued previously. these notes are also potent symbols of our rich heritage. the design of the $ 100 bank note celebrates canadian innovation in medical research, including the discovery of insulin to treat diabetes. we are honoured to issue this note on the site where banting and best conducted their groundbreaking research almost a century ago. many forget that diabetes was once a death sentence. the discovery of insulin changed that. it was at that desk, sir frederick banting ’ s desk, where science and innovation met and the lives of hundreds of millions of people changed. today ’ s date is no coincidence. november 14 is world diabetes day and the 120th anniversary of sir frederick banting ’ s birth. this $ 100 note is a tribute to canadian researchers who have left their mark in many areas. allow me to mention the transformational work of john hopps, who invented the pacemaker in 1950. he developed this life - saving device at the university of toronto's banting institute, located across the street from here. this spirit of innovation carries on today and so the note also celebrates the scientists who continue to make our world a better place by improving the lives of many. here in mars, medical professionals are mapping the human genetic code as well as tackling some of the most daunting medical challenges of our time, including cancer and macular degeneration. these polymer notes don ’ t just celebrate innovation ; they are themselves at the frontier of bank note technology. they were developed by a team of physicists, chemists, engineers and other experts from the bank of canada and from across the bank note industry. there is no other currency like it anywhere in the world. these new notes contain a unique combination of transparency, holography and other sophisticated security elements. in addition to impressive security features to stay ahead of counterfeiting threats, these bank notes will last longer – at least two - and - a - half times

domestic activity collapsed. there are few institutional mechanisms within the economic and monetary union ( emu ) at present to offset the shock. in alberta ’ s case, a rising tide has lifted all boats. that is because the canadian monetary union has what europe does not : a single financial market ; a flexible, national labour market ; and significant fiscal transfers. these smooth the adjustments brought about by the large shifts in relative prices. fiscal federalism helps to share risks despite the equilibrating movement of real provincial exchange rates, shocks to our economy can still have a more significant impact on some regions than others. since monetary policy works at an aggregate level to support aggregate demand, it cannot easily deal with such distributional consequences. m. carney, “ dutch disease, ” a speech delivered at the spruce meadows round table, calgary, alberta, 7 september 2012. internal trade has been supported by the removal of interprovincial barriers following the implementation of canada ’ s agreement on internal trade in 1995. bis central bankers ’ speeches fiscal transfers are thus an important element of a successful monetary union. they are sizeable in canada, representing 8 per cent of gdp across all levels of government ( charts 6 and 7 ). canada ’ s equalization program helps stabilize the impact of asymmetric shocks. for example, between 2006 and 2011, federal support programs, including equalization payments and canadian social and health transfers, grew more rapidly for provinces whose economies were hardest hit by the crisis ( chart 8 ). 3 the employment insurance program also shares risk. through transfers to 2 per cent of the working - age population, the program particularly benefits provinces with higher unemployment rates ( chart 9 ). in the medium term, one of the building blocks of european fiscal federalism could be a paneuropean employment insurance scheme built on a common european labour market. this would reduce impediments for those looking across the continent for work, while providing a cross - country automatic stabilizer. labour market flexibility for canada and canadians to work, workers must be able to move to different jobs, and wages must adjust to help maintain full employment. by international standards, the canadian labour market is highly flexible, although there is still room for improvement. 4 our labour mobility as a whole is similar to that in the united states. by some estimates, the canadian labour market is almost four times as flexible as the european labour market. 5 an obvious example of this flexibility is the way that canadians have responded to the higher wages and