Who will be the new Governor of the Bank of Canada?

Bank of Canada Governor David Dodge will not seek second term:

Governor David Dodge has informed the Bank of Canada's Board of Directors and the Minister of Finance that he will not seek a second term as Governor.

While Governor Dodge's term continues until 31 January 2008, he indicated he is making his plans known well in advance to facilitate the selection and appointment of his successor.

Some early speculation:

If tradition is resumed, senior deputy governor Paul Jenkins would obviously be at the top of the list. But since outsiders are now considered viable candidates, names such as Don Drummond (chief economist at Toronto-Dominion Bank), Kevin Lynch (chief clerk of the privy council) and Stephen Poloz (chief economist at Export Development Canada) have bubbled to the fore.

Any of those three would be credible candidates, although the internal politics of the Bank would probably exclude at least one of them. But I wonder if the search committee will look to academia this time around. Off the top of my head, I can think of at least 10 professors with whom I'd trust the keys to the Governor's office.

Update - More early speculation:

One market source said Malcolm Knight, a former senior deputy governor of the Bank of Canada who now heads the Bank for International Settlements, might be a candidate. Deputy Governor Tiff Macklem and Mark Carney, the senior associate deputy minister at the Finance Department, are also considered sharp young forces that could be in the race.