Harry Kitchen Lecture in Public Policy

Founded in 2007, the Harry Kitchen Lecture in Public Policy honours Professor Harry Kitchen's contributions to research and public policy information. The annual series features academics and thought-leaders in the realm of public policy and economics, providing access to experts to Trent University students, and the wider community

Fiscal and monetary policy anchors in an era of global excess saving

Tuesday, October 20, 2020

In normal times stabilization policy anchored on both a flexible inflation target by an independent central bank and a stable long-run debt/GDP target by the treasury works reasonably well to dampen the amplitude of the business cycle. But in times when the structure of the economy is generating persistent conditions of excess supply or excess demand (sharply lower or higher real natural rate of interest), some modification of these anchors (or better coordination of monetary and fiscal levers) may be needed to stabilize the economy. This paper considers what modifications to these anchors to the macroeconomic policy could be helpful in the context of today’s apparent global condition of excess supply.

David A. Dodge O.C.


David Dodge headshot


Senior Advisor, Bennett Jones LLP, Former Governor of the Bank of Canada

About David Dodge

During a distinguished career in the federal public service, Mr. Dodge held senior positions
in the Central Mortgage and Housing Corporation, the Anti-Inflation Board, and the
Department of Employment and Immigration. After serving in a number of increasingly
senior positions at the Department of Finance, including that of G-7 Deputy, he was Deputy
Minister of Finance from 1992 to 1997. In that role, he served as a member of the Bank of
Canada's Board of Directors.

In 1998 he was appointed Deputy Minister of Health, a position he held until his
appointment as Governor of the Bank of Canada.

Mr. Dodge, appointed Governor of the Bank of Canada, effective 1 February 2001 for a term
of seven years, retired on 31 January 2008. From July 2008 to June 2014, he served as
Chancellor of Queen's University. From 2009 to 2015, he was a member of the board of
directors of Canadian Utilities Limited, ATCO Limited and the Bank of Nova Scotia.

Mr. Dodge is Senior Advisor at Bennett Jones LLP one of Canada's leading law firms. He also
serves on the board of the Canadian Institute for Advanced Research, and Chairs the
National Council of the C.D. Howe Institute.

A native of Toronto, Mr. Dodge received a bachelor's degree (honours) from Queen's
University, and a Ph.D. in economics from Princeton.
During his academic career, he taught economics at Queen's University; at the School of
Advanced International Studies, Johns Hopkins University; at the Faculty of Commerce at
the University of British Columbia; and at Simon Fraser University. He also served as
Director of the International Economics Program of the Institute for Research on Public
Policy. Mr. Dodge has been awarded honorary degrees from a number of Canadian
universities. In 2009, he was elected a fellow of the Royal Society of Canada.

For more information, contact, Babin Joy, babinjoy@trentu.ca