David A. Dodge: Governor, Bank of Canada.

Economic Review (Kansas City), September, 2002 by Dodge, David A.

What I propose to do on this panel today is to talk about stabilization policy and policy cooperation from the viewpoint of an industrial country that has a floating exchange rate and both an explicit inflation target for monetary policy and a clear objective for fiscal policy. While my perspective has been particularly influenced by my time as deputy minister of finance and now as governor of Canada's central bank, the broad outlines of my conclusions are widely shared, not only in those two institutions, but in Canadian academic and public policy circles as well. Moreover, I believe that our experience and the lessons that can be drawn from it are applicable to all open economies with flexible exchange rates.

In the 1990s, the Bank of Canada and the...

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