« Canada's housing sector is still holding up | Main | More signs that Canada may yet be spared from the worst of a US recession »


Feed You can follow this conversation by subscribing to the comment feed for this post.

"Carney's familiarity with financial markets is his strongest asset in his new job; the Bank's major challenges over the next few years are likely to involve trying to avoid such things as the subprime meltdown. But he's only 42, and he may be entertaining the possibility of returning to the private sector after his mandate as Governor."

When I try to think seriously about this, several questions come to mind.
1) Have past governors of the BoC had any trouble finding private sector employment after their tenure?
2) One of the nice things about the BoC job is that it boosts your international profile, what with all the G7 and BIS and IMF etc. meetings. Does being tough on the Canadian financial sector hurt your prospects in the international talent market?
3) Ambitious types often shift from public to private or vice versa. (C.D. Howe comes to mind as an example.) Given Carney's good private sector credentials, what is his marginal benefit from further polishing them versus establishing his bona fides with the public sector?

Those are good points. Presumably - hopefully! - a willingness to be hard-nosed and unpopular in order to do one's job properly would be considered an asset in that market.

If you want to see what happens when a central banker gives in to the financial community, look no farther than down south. Bernanke seems all too eager to cut interest rates to spur some definition of "growth" at the expense of price stability. The BoC should avoid such antics at all costs.

The comments to this entry are closed.

Search this site

  • Google

Blog powered by Typepad