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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.

Today, I want to share with all of you Canada's perspective on the design of an inflation-targeting system, some of the lessons we have learned over almost 15 years of experience with explicit inflation targets, and some of the challenges that remain. This topic is timely, because the Bank of Canada's inflation-targeting agreement with the Canadian government is up for renewal next year, and I am pleased to note that, earlier today, the Government announced its intention to renew our agreement for another five years.

Over the past year, I have spoken a number of times on the topic of efficiency, and why it is so important for Canadian policy-makers to keep in mind the goal of an efficient financial system. Today, I want to talk about Canada's system of pension plans and how they contribute to the efficiency of financial markets and of the economy as a whole.

Canada's pension system should be strengthened so it can continue to play an important role in our economy and contribute to efficiency of financial markets, Bank of Canada Governor David Dodge said today.

As globalization intensifies, more and more regions are realizing the benefits of open trade and capital account liberalization. But with increased globalization also comes increased exposure to shocks originating outside each country's borders.