Bank of Canada Governors are appointed by the bank’s independent directors, subject to the approval of the Minister of Finance and the federal Cabinet. At least, that’s how the Bank of Canada puts it.
Jim Flaherty would doubtless say it differently – the directors give the Finance Minister a shortlist of qualified candidates and he picks the one most likely to follow the government’s agenda.
In reality, it is a very political appointment – which, in part, explains why Stephen Poloz is the new Governor.
That’s not to suggest that Mr. Poloz is not a worthy appointment. He has a PhD in economics; spent 14 years with the Bank earlier in his career and has, by all accounts, done a good job as president at Export Development Canada.
Finn Poschmann, vice-president of research at C.D. Howe Institute, called the surprise appointment “an interesting choice but not a shock…
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