Policy trumps continuity in central bank head: Flaherty
Published Sunday, December 23, 2012 9:00AM EST
Hinting that the next Governor of the Bank of Canada might not be picked from within its own ranks, Finance Minister Jim Flaherty says continuity matters, but it's not the main factor in the decision-making process.
In an interview with CTV Question Period host Kevin Newman, Flaherty was asked whether continuity is a big factor in finding a replacement for outgoing Governor Mark Carney.
"Continuity matters," Flaherty said, pointing out that Carney's replacement will be the third bank head during his time in government.
"But what really matters is to have a person who will maintain solid monetary policy and control inflation. Inflation is very dangerous."
Flaherty also noted that he and Carney have enjoyed a long working relationship, but admitted he did not try to keep him from taking the job as Governor of the Bank of England.
"He had made up his mind. And he’s entitled to make his own career choices," Flaherty said, predicting that, "he has a brilliant career ahead of him.
"He's done a great job for Canada and his influence internationally will be helpful to our country."
Carney will hold the reins at the Bank of Canada until June 1, 2013. He then has a month to cross the pond in order to take over the Bank of England’s top job on July 1.
Does the finance minister intend to tinker with Canada's housing market in 2013? Watch his complete interview on CTV's Question Period Sunday to find out.
Question Period is broadcast Sunday at 11 a.m. in Ontario, Quebec & Manitoba; 12 p.m. in Atlantic Canada; 2 p.m. in B.C.; 3 p.m. in Alberta & Saskatchewan.