Toni Gravelle, Deputy Governor of the Bank of Canada (BoC), took part in a fireside chat with students in the Master of Financial Economics program on July 9th. One of four Deputy Governors, Gravelle sits on the central bank’s Governing Council led by the Governor and Senior Deputy Governor. The six members of the council engage in every aspect of the country’s monetary policy, including setting interest rates. Deputy governors are appointed by the bank’s Governing Council at the recommendation of the Prime Minister and cabinet. Like deputy ministers and other senior civil servants, these highly trained and experienced individuals oversee operations and delivery of the ministerial services. Members of the governing council supervise, and are accountable, for ensuring the Bank of Canada fulfills its mandate. In his role, Gravelle leads the Financial Markets Department (FMD) and the Banking and Payments Department of the BoC. He is also one of two Deputy Governors who oversee the bank’s role in supporting a reliable financial system. Gravelle earned his PhD in Economics from the University of Western Ontario.
For the current cohort of MFE students, who started the program at the beginning of July, Gravelle’s discussion introduced the highly detailed research and rigorous analyses that inform central monetary policy decisions and how they communicate their work to Canadians.
“Having worked at the Bank of Canada before as a research assistant it was great to get Toni’s perspective on its operations,” said student Mila Nikolova. “During the panel, I was surprised in how much the Bank prioritizes transparency in its communication with the Canadian public, especially in managing expectations. He had also touched on how academia helps shape your thought process in thinking about economic modeling in a more structured way. It inspires me to take on additional PhD courses during my time in grad school and apply that sort of critical thinking throughout my career.”
Participants discussed difference between how the central bank determines policy and the public’s understanding of how those policies influence their own earning, spending, borrowing, lending, and investment.
“One particularly interesting aspect was the bank’s move toward clearer communication with the public,” said student Jayden Plener. “While we learn about the importance of central banks managing expectations in macroeconomics classes, hearing about the bank’s specific approach was enlightening. The Deputy Governor explained how they actively monitor investor expectations in the market. If they notice the market mispricing a rate cut, they use forward-looking policy statements to better align expectations and avoid shocks. The key takeaway is to pay close attention to the central bank’s messaging.
For other students, the discussion was an opportunity to start thinking about moving knowledge from coursework to real world applications.
“We had an insightful and deep conversation regarding topics from economic drivers to Canadian productivity, central banking, and even career paths,” said Blake DeBruin Martos who functioned as moderator of the discussion. “The most inspiring point was about the Canadian economy. Toni mentioned that we will become Canada’s next set of skilled labourers helping our country grow. Specifically, highlighting the education and rigorous thought process a graduate program yields, excelling us into the workforce.”
Guest lectures and discussions like the one attended by Dr. Gravelle are a feature of the MFE program.
“Financial Economics is very much a real-world field that impacts all our lives in terms of monetary policy, financial and banking operations and markets. When our students graduate, they go on to fill roles that demand cutting edge research and analysis,” said MFE Assistant Director Jeffrey Ferrer. “Being exposed to thinkers and practitioners like Deputy Governor Toni Gravelle gives MFE students an opportunity to broaden their scope and find areas of expertise to explore in their own careers.”
Return to the Department of Economics website.
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