do get there. while some companies disappeared during the great recession, never to return, others are emerging in new industries. at the same time, the economy of the future will be shaped by demographic forces that have been decades in the making. the retirement of the baby - boom generation is affecting the economy ’ s growth potential, which is one reason why interest rates will probably remain lower than in the past. recent events make it clear that we live in an uncertain world. navigating the waters of the global economy is always challenging : you never know when a sudden storm will emerge to blow us off course. that ’ s why we take a risk - management approach to monetary policy. we look at all the data, derived from the latest models and tools, and supplement these with intelligence from companies and survey data. ultimately, though, we make judgments – both about the degree of economic slack in the economy and the implications for our goal of inflation control. by being transparent about the signs we ’ re watching, we are trying to help financial markets make their own judgments about the economy ’ s prospects. these opinions are important because they serve as a useful check on our own analysis. it has been a long voyage, and it isn ’ t over yet. but you can be sure that the bank of canada will continue to work toward bringing the economy home, at full capacity and with inflation sustainably on target, so we can fulfill our mandate to support the economic welfare of all canadians. i would like to thank pierre st - amant, marc - andre gosselin and david amirault for their help in preparing this speech. bis central bankers ’ speeches

benoit cœure : monetary policy transmission and bank deleveraging speech by mr benoit cœure, member of the executive board of the european central bank, at “ the future of banking summit ”, organised by “ the economist ”, paris, 13 march 2014. * * * i would like to thank federic holm - hadulla for his contributions. i remain solely responsible for the opinions contained herein. summary deleveraging is not a process that policy - makers should seek to avoid ; rather, it needs to take place and be properly managed, explains ecb executive board member benoit cœure. describing the good, the bad and the ugly deleveraging at the future of banking summit organised by “ the economist ” in paris, he emphasises how the wrong type of deleveraging could impede recovery and make it more difficult for central banks to engineer an appropriate degree of monetary accommodation. to ensure the right type of deleveraging is achieved, mr. cœure highlights, “ both monetary policy and prudential supervision – notably the ecb ’ s ongoing comprehensive assessment – have a key role to play. ” according to him, the comprehensive assessment of banks ’ balance sheets and the steps taken towards the banking union are crucial to establish the conditions necessary for a transparent, competitive and stable banking sector. he adds, “ and they will help monetary policy to regain traction across the euro area. ” he concludes by explaining why it is important for the banking union to be complete, “ not moving promptly towards a single resolution mechanism ( srm ) and a single resolution fund ( srf ) would prolong financial fragmentation, leave the financial system exposed to systemic fragility, and, ultimately, be harmful for growth and jobs. this would in particular be the case if the srf is only slowly mutualised, and if it cannot resort to a common european backstop from the outset. ” * * * ladies and gentlemen, it is a great pleasure to speak to you at the economist ’ s “ future of banking ” summit. but before turning to the future of banking, let me briefly look back at its recent past. as you know well, the euro area banking sector is currently undergoing a secular deleveraging process. the need for deleveraging had its roots in a period of strong bank balance sheet expansion in the last few years. from the start of that expansion in 2005 to its peak in 2012, the total assets of monetary financial institutions rose by more than