outbreaks be avoided as social - distancing measures lapse? how long will it take for confidence to return and normal spending to resume? and what will be the scope and timing of new therapies, testing, or a vaccine? the answers to these questions will go a long way toward setting the timing and pace of the economic recovery. since the answers are currently unknowable, policies will need to be ready to address a range of possible outcomes. the overall policy response to date has provided a measure of relief and stability, and will provide some support to the recovery when it comes. but the coronavirus crisis raises longer - term concerns as well. the record shows that deeper and longer recessions can leave behind lasting damage to the productive capacity of the economy. 3 avoidable household and business insolvencies can weigh on growth for years to come. long stretches of unemployment can damage or end workers ’ careers as their skills lose value and professional networks dry up, and leave families in greater debt. 4 the loss of thousands of small - and medium - sized businesses across the country would destroy the life ’ s work and family legacy of many business and community leaders and limit the strength of the recovery when it comes. these businesses are a principal source of job creation — something we will sorely need as people seek to return to work. a prolonged recession and weak recovery could also discourage business investment and expansion, further limiting the resurgence of jobs as well as the growth of capital stock and the pace of technological advancement. the result could be an extended period of low productivity growth and stagnant incomes. we ought to do what we can to avoid these outcomes, and that may require additional policy measures. at the fed, we will continue to use our tools to their fullest until the crisis has passed and the economic recovery is well under way. recall that the fed has lending powers, not spending powers. a loan from a fed facility can provide a bridge across temporary interruptions to liquidity, and those loans will help many borrowers get through the current crisis. but the recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems. additional fiscal support could be costly, but worth it if it helps avoid long - term economic damage and leaves us with a stronger recovery. this tradeoff is one for our elected representatives, who wield powers of taxation and spending. thank you. i look forward to our discussion. references blanchard

mark carney : bank note launch remarks by mr mark carney, governor of the bank of canada and chairman of the financial stability board, at the launch of the new 50 dollar bank note, quebec city, quebec, 26 march 2012. * * * hello and welcome. it is a pleasure to be here to announce the launch of the new 50 dollar bank note. this bank note features a symbol of canadian innovation and scientific excellence : the canadian coast guard icebreaker and research vessel, the amundsen. today is also a celebration of the 50th anniversary of the coast guard. so we find ourselves in an ideal location, in quebec, a city with a rich maritime heritage. icebreakers are an important part of the coast guard ’ s fleet, and it is entirely fitting to feature one on our currency. these new 50 dollar polymer bank notes, the second of our frontiers series, will become available in banks throughout the country as of today. this series of bank notes is called “ frontiers ” for two reasons. first, each bank note includes images that represent canada ’ s exploits and achievements, particularly those in the sciences, technology or exploration. the image on this note is an example of expanding the frontiers of knowledge and understanding of the arctic. the bank notes themselves have crossed a technological frontier. there is simply no other currency like it. these new notes feature a unique combination of transparent elements, holographic images, and other security features. they are the result of innovative technology and canadian ingenuity, including research by the bank of canada and excellent collaboration among physicists, chemists, engineers and other experts in the bank note industry. thanks to greatly enhanced security features and efforts undertaken by police forces, especially the surete du quebec and the rcmp, as well as the support of financial institutions and retailers, counterfeiting rates have been reduced by 90 per cent since 2004. issuing this new series of bank notes enables us to continue to stay ahead of counterfeiters. in addition to impressive security features to combat counterfeiting, these notes will last longer than those made from paper – at least two - and - a - half times longer – and will therefore be more economical and have a smaller environmental footprint. when they are eventually withdrawn from circulation, they will be recycled into other products here in canada. safer, cheaper, and greener : indeed, these new bank notes are a 21st century achievement of which all canadians should be proud and in which they can have full confidence. this