Episode 50 – Profiles in Credit – David Dodge
September 24, 2020

Episode 50 – Profiles in Credit – David Dodge

Geoff Castle chats with former Bank of Canada Governor, David Dodge.

Subtitle: A journey through a distinguished career in Canadian economics.

In this episode Geoff Castle, Fixed Income Portfolio Manager, chats with former Bank of Canada Governor, David Dodge. They discuss a number of critical economic events that occurred during his seven-year term including 9/11, the commodities boom in the mid 2000s and the early stages of the 2008 financial crisis along with his current voice in Canadian economic circles as a senior advisor at Bennett Jones.  

Key Takeaways

[01:58]What interested David in finance and why he pursued a Ph.D. in economics.
[03:43]The issues that drove inflation in the 1970s and how the economy was different then than it is today.
[08:38]Critical policy initiatives that David worked on through the 1980s and 90s including enacting the GST.
[12:02]Income Trusts and the changes that happened around that policy over time.
[18:08]How David handled 9/11 as Governor of the Bank of Canada from the perspective of the Canadian economy.
[31:04]The trading range of the Canadian dollar which fell to 62 cents, the lowest exchange rate it had ever had against the US dollar, during David’s tenure.
[36:27]A discussion around the contemporary economy in the market including modern theories and what the “right” policy view is for this day and age.
[45:49]The 2021 renewal of Canada's Inflation Targeting Policy by The Bank of Canada and the issues surrounding this.
[51:40]David’s thoughts on the Central Bank, Bank of Japan, the ECB and even the Bank of Canada actively intervening in markets or purchases of government bonds, ETFs and corporate bonds, a tool that David would not have used back when he was Governor.
[57:54]What financial advisors and investors should focus on when thinking about the Bank of Canada or thinking about their investments in areas like fixed income.