Next Governor of the Bank of Canada? After Dodge?

[August1991]

Kevin Lynch has officially declared he is not in the running to become the next governor of the Bank of Canada, paving the way for what is shaping up to be a two-horse race between consummate bank insider Paul Jenkins and Department of Finance wunderkind Mark Carney.

There had been talk in Ottawa that Mr. Lynch might have left his job as Clerk of the Privy Council and Secretary to the Cabinet during parliament's summer break to pursue the governorship, but a Cabinet spokesman said yesterday he was not a candidate.

While outsiders such as Stephen Poloz at Export Development Canada or William White at the Bank for International Settlements would be considered strong candidates, observers say the field appears to be narrowing to Mr. Jenkins and Mr. Carney.

David Dodge steps down in January, 2008, after a seven-year term and the selection process is set to be completed this fall with an announcement likely towards the end of the year.

"I think you're looking at Paul Jenkins and Mark Carney," one Bay Street observer said.

National Post

There has never been a francophone governor of the Bank of Canada and to my knowledge, there has never been a woman governor of a central bank in any country in the world (except Russia and she was an interim appointment during a crisis).

First, everyone should note that Harper has chosen not to renew Dodge's seven-year term. (That's a wise move in my opinion.)

Second, Harper must have someone in mind.

Third, Harper should pass legislation like Blair did on taking power in 1997 making the central bank independent of government (but Harper might have trouble given his minority government status). A good second step is to choose someone with more stature than a PM.

Fourth, Harper should name a woman or a francophone as the next governor of the Bank of Canada.

IMV, Harper should name Henri-Paul Rousseau. Harper would have to look very hard to find someone as competent and as independent as Rousseau. He'd also have to look hard to find someone as willing to take such a cut in salary. (Maybe Loreen should have a chat with Rousseau's wife.)

Rousseau would be a governor to see us through 14 years (at least) of governorship and make the Bank truly independent.

[stephen Poloz? WTF? Where do the National Post reporters troll?]

[jdobbin]

First, everyone should note that Harper has chosen not to renew Dodge's seven-year term. (That's a wise move in my opinion.)

Second, Harper must have someone in mind.

Where did you see that Dodge's term was not renewed?

In addition, why does it have to be a French Canadian or a woman? I thought you wanted a merit based appointment.

[geoffrey]

Quebec is a diminishing power, we don't need a Governor that understands the dynamics of the second weakest region of our economy... The BoC Governor has to have an understanding of Canada's growth and the challenges we face. Alberta needs interest rate hikes and an ending of 5% inflation. The problem is the Bank of Canada is simply the Bank of Ontario and only sets policy to what the manufacturing sector needs.

I'd like to see a Govenor with intimate knowledge of the challenges of the West, something we've never had. He doesn't have to Albertan or British Columbian, but has to understand the dynamics out here. Dodge doesn't (I note that Dodge has experience teaching in BC, but no experience with the real world in the West).

In fact, I'd like to see a bank chief with little ties to the government, someone coming directly from industry.

This business of a francophone or woman is ridiculous. Firstly, Quebeckers, from a business sense, generally live in a bubble from the rest of Canada. A Quebecker appointment would be a very poor choice. Whether or not the chief is a woman is completely irrelevant.

Edited July 10, 2007 by geoffrey