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Demystifying the Bank of Canada: Governor Tiff Macklem Grants Telfer Students with Insights on Leadership and Monetary Policy

Tiff Macklem, Governor of the Bank of Canada, smiling during a formal event with Canadian flags in the background.

By Xavier Champagne, Matthew Montoni

Ottawa, November – On Monday, November 4th, Tiff Macklem, Governor of the Bank of Canada, met with students from the Telfer School of Management to provide insights into the Bank’s recent decisions and future direction. During this talk, students engaged with the Governor, asking questions about his professional journey, his role, and his perspective on changes within the central bank. The event was held in the Desmarais building at the University of Ottawa. 

During his talk, Macklem provided students with a behind-the-scenes look at his work at the Bank of Canada, discussing critical topics such as monetary policy, GDP trends, inflation, and the external factors shaping the Bank’s recent decisions. He also emphasized the importance of data analytics and evidence-based decision-making, priorities he championed as Dean of the Rotman School of Management. These principles now play a pivotal role in the Bank’s operations. Macklem’s reputation as a “catalyst for change” precedes him, with artificial intelligence and quantum computing tools among innovations poised to help shape the Bank of Canada’s future strategies.

Macklem acknowledged that his experience during the 2008 financial crisis as Associate Deputy Minister at the Department of Finance Canada had equipped him to handle adversity. He recounted the late nights spent analyzing data, solving problems, and managing crises, experiences that proved invaluable in helping him identify trends and navigate the uncertainties of the COVID-19 pandemic. Sharing this perspective with Telfer students, Macklem offered a key piece of advice: embrace challenges and step into difficult situations. “Don’t be afraid to jump into the fire,” he encouraged, explaining that moments of adversity are often the most significant for personal growth, development, and learning.

The event offered Telfer students a rare and valuable opportunity to gain insights into the inner workings of Canada’s central bank while learning from the Governor’s extensive career. Beyond demystifying the institution, Macklem’s candid and thoughtful responses to students’ questions demonstrated his dedication to fostering the next generation of business leaders. He welcomed complex questions, aiming to illuminate the intricate decision-making processes that shape economic policy. As he explained, even a small adjustment in interest rates can profoundly impact the lives of millions of Canadians. For the students in attendance, the talk was more than an introduction to macroeconomics; it was an inspiring glimpse into the thoughtfulness and responsibility behind one of Canada’s most influential roles.

Born in Montreal, Quebec, Tiff Macklem initially gravitated toward the social sciences before discovering his passion for economics. He began his academic journey studying geography at Queen’s University but switched to economics after an introductory course sparked his interest – a decision that shaped the trajectory of his career. Macklem earned a bachelor’s degree in economics from Queen’s in 1983 and subsequently pursued a master’s degree at the University of Western Ontario.

Macklem joined the Bank of Canada in an entry-level position. Reflecting on this period, he shared a pivotal piece of advice with Telfer students: always continue to learn. While working at the Bank, Macklem observed that colleagues and superiors with PhDs in economics had a deeper understanding of complex issues and could offer more robust insights and solutions. Inspired to enhance his expertise and contribute at a higher level, he returned to the University of Western Ontario to complete a PhD in economics, which he achieved in 1989. This unwavering passion for learning, and sharing knowledge with others, has remained a defining trait throughout his career.

Following his doctoral studies, Macklem rejoined the Bank of Canada in a senior role within what is now the Canadian Economic Analysis Department. His career advanced rapidly: he became Advisor to the Governor in August 2003, Deputy Governor in December 2004, and later Senior Deputy Governor in 2010. he represented Canada at G7, G20, and Financial Stability Board conferences as Deputy Minister at the Department of Finance Canada. 

In 2014, Dr. Macklem expanded his influence on academia and business education when he was appointed Dean of the Rotman School of Management at the University of Toronto. There, he earned a reputation as a “catalyst for change,” championing experiential learning and developing programs to prepare students with skills in data analytics and evidence-based decision-making.

On June 3, 2020, Macklem returned to the Bank of Canada as its Governor, beginning a seven-year term tasked with steering the nation’s monetary policy. His early tenure was anything but smooth, as he assumed the role during the turbulent onset of the COVID-19 pandemic. Canada faced a 2.1% contraction in real GDP in the first quarter of 2020, the largest quarterly decline since the 2009 recession. Record-high unemployment, drops in household spending and severe reductions in exports marked an economic crisis.

Tiff Macklem's visit to the Telfer School of Management provided students with a glimpse into the responsibilities and challenges of leading the Bank of Canada. His insights, drawn from a career defined by a commitment to continuous learning, inspired its participants to embrace adversity and strive for impactful contributions.

Works Cited

Bank of Canada. "Tiff Macklem." Bank of Canada.

Financial Stability Board. "Tiff Macklem." FSB.

Gellatly, G., & McCormack, C. (2020). Recent Developments in the Canadian  Economy, 2020: COVID-19, second  edition. Economic Insights, 2020004 No.106 (11-626-X). Statistics Canada.

Kalvapalle, R. (2020, May 5). Tiff Macklem, dean of U of T’s Rotman School of Management, appointed governor of Bank of Canada. University of Toronto.

Selwyn House School. "Tiff Macklem: Distinguished Alum in the Financial Sector." Selwyn House News.