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Sound financial investment is important to individuals, to firms, and to society as a whole. By definition, investment is forward looking, and thus our future financial well-being is shaped by the soundness of the investment decisions we make today.

It goes without saying that a sound system of private pensions is important from the perspective of pensioners who rely on a given plan for their retirement income. For firms, a pension plan can help to attract and retain staff, and so the business community also counts on a sound pension system.

Policy-makers need to make sure that Canada's system of private pensions provides the right incentives for risk to be managed appropriately, Bank of Canada Governor David Dodge said today.

"This simple paradigm is very helpful because monetary policy works better when it is understood," the Governor said.

The Bank of Canada has been around for over 70 years. Throughout this period, the Bank has had one over-arching mandate: to promote the economic and financial welfare of Canadians. Over the years, we have learned that the best contribution that monetary policy can make in this regard is to give Canadians confidence in the future value of their money.

Canada's macroeconomic policies are second to none in supporting financial system efficiency, but work is needed to bring the country's structural policies up to that level, Bank of Canada Governor David Dodge said today.

The FSR reports on developments and trends in financial systems here and abroad, summarizes recent research by Bank staff on financial sector policies, and promotes discussion of how to strengthen our financial system. In short, the goal of the FSR is to improve financial system efficiency and stability.

Measures of productivity tell us how much output we produce from the use of tangible inputs - such as skilled workers and capital equipment - and intangible inputs - such as technological advances and managerial and entrepreneurial know-how. Productivity rises over time as we boost output by finding new and more efficient ways to use these inputs.

Improving Canada's productivity performance requires more efficient allocation of labour and capital resources, and continued innovation in both products and production processes, Bank of Canada Governor David Dodge said today at a conference organized by the Canadian Council for Public-Private Partnerships.

Bank of Canada Governor David Dodge today said that the pursuit of financial system efficiency is an important way for regulators to "best serve the public and contribute to sustainable economic growth and prosperity in Canada."