International Financial Architecture and the Resolution of Financial Crises
| DOI | 10.1177/002070200205700407 |
| Published date | 01 December 2002 |
| Author | David Dodge |
| Date | 01 December 2002 |
| Subject Matter | Article |
DAVID
DODGE
International
financial
architecture
and
the
resolution
of
financial
crises
THE
PREAMBLE
TO
THE
BANK
OF CANADA
ACT
calls
on
the
Bank
to pro-
mote
the
economic
and
financial
welfare
of
Canada.
In
this
context,
the
Bank
aims
to
foster
good
economic performance
through
monetary
sta-
bility
-
that
is
to
say,
through
low,
stable,
and
predictable
inflation.
But
no
market economy
can
function
properly
unless
it
is
also
supported
by
an
efficient
and
stable
financial
system.
Sound
financial
institutions,
a
robust
infrastructure, and
well-functioning
financial markets
are
neces-
sary
to
facilitate
transactions
and
to
properly
channel
savings
into
investments.
This
is
certainly
true
for Canada's
domestic
economy.
But
in
today's
interconnected
world,
it
is
equally
true
for
the
global
economy.
Recent
experience
has
shown
that
world
events can
have
serious
repercussions
on
national
financial
markets,
including
ours,
and indeed
on
our
entire
economy.
The
Mexican
crisis
of
1994-5
and
the
Asian
and
Russian
crises
of
1997-8
are
cases
in
point.
In
both
instances,
Canada
was
side-
swiped.
And although
the
recent
acute
economic
and
social
problems
in
Argentina
have
not
resulted
in
widespread
contagion, they
have,
never-
theless,
had
implications
for
Canadian
banks
operating
in,
or
holding
claims
on, Argentina.
Governor
of
the
Bank
of
Canada. This
is
a
slightly
revised version
ofa
speech
given
to
the
National
Capital
Branch
of
the
Canadian
Institute
ofInternationalAffairs
on
14
May
2002.
INTERNATIONAL
JOURNAL
AUTUMN
2002
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