University of Toronto professor joins the central bank’s decision-making body
The Bank of Canada has appointed University of Toronto professor Michelle Alexopoulos as an external deputy governor, adding an independent voice to its rate-setting governing council.
Alexopoulos will assume the part-time role on March 17 for a two-year term. Her appointment follows a public external recruitment process and increases the size of the Bank’s governing council to seven members.
Alexopoulos specializes in business cycles, economic modelling, and the impact of technological change, with her recent research focusing on central bank communications and productivity. She is a past president of the Canadian Economics Association and has been a multi-year recipient of the Bank of Canada’s Fellowship Award.
“I am delighted that Michelle Alexopoulos is joining the Bank’s Governing Council and I am looking forward to working with her,” BoC governor Tiff Macklem said in a press release. “She is a top-tier macroeconomist with deep expertise in issues critical to Canada’s economic prospects. I am confident that her knowledge and innovative thinking will contribute importantly to our policy decision making.”
What are external deputy governors?
The external deputy governor role was created in 2023 to introduce outside perspectives to the Bank’s monetary policy deliberations. The first appointee, Nicolas Vincent, took on the position in March 2023, with his term later extended to three years.
Following the success of the initiative, the Bank announced in October last October that it would create a second external deputy governor position to further diversify viewpoints within the governing council.
The Bank’s board of directors formed a selection committee to oversee the recruitment process and hired executive search firm Boyden to assist with the external search.
“As the Bank navigates an increasingly complex and fast-changing economy, the creation of a second external governing council role will add further perspective and bring different skills and experiences to the table,” Macklem said in October.
What the role entails
As an external deputy governor, Alexopoulos will participate in all Governing Council discussions on interest rates and monetary policy while continuing her academic work at the University of Toronto. The part-time position is designed to enhance the Bank’s decision-making process by incorporating viewpoints from experts who are not full-time central bank officials.
Read more: BoC decisionmaker highlights importance of communicating rate cut rationale
The Bank of Canada has emphasized that external deputy governors play a critical role in policy discussions, financial stability assessments, and public communications. These positions are initially appointed for two years, with the possibility of an extension for one or two additional years.
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