Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday May 2, 2020
Tiff Macklem to lead the Bank of Canada
Finance Minister Bill Morneau has appointed Tiff Macklem, the former senior deputy governor of the Bank of Canada, to take over the top job at the central bank as it navigates the uncertainty of a pandemic-driven recession.
Macklem is currently the dean of the Rotman School of Management in Toronto, but had spent decades with the Bank of Canada before starting that appointment.
Macklem began his career at the bank in 1984. He was widely expected to win the contest for bank governor in 2013, but was beaten out by Stephen Poloz, who was then CEO of Export Development Canada.
Poloz’s term ends June 2.
The transition to new leadership comes as millions of Canadians have signed up for government aid and companies big and small are relying on federally backed wage subsidies to weather the COVID-19 pandemic.
During Friday’s announcement, Morneau said he’s confident Macklem’s expertise in financial markets will help the central bank navigate an economic crisis never before seen in Canada.
“The bank has to be humble about what it doesn’t know. There’s a lot we don’t know about this disease. There’s a lot that medical experts don’t know about this disease,” Macklem said during his unveiling in Ottawa.
“But the Bank of Canada has tremendous analytic economic financial capacity to analyze what’s going on in the economy, and the important role for the Bank of Canada is to provide Canadians with as much information as it can honestly provide as to what is happening and what the recovery could look like, recognizing that we’re probably going to have to look at more than one scenario.”
In the past months, Poloz and Morneau have appeared at several joint news conferences to show a co-ordinated approach on monetary and fiscal policy to deal with the economic fallout of the pandemic and global oil shocks.
Morneau has announced more than $250 billion in direct financial aid, credit support and tax deferrals to help offset the impact of the COVID-19 pandemic. (CBC)