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August 16, 2011

Our understanding of the links between the financial sector and the rest of the economy needs to improve, concludes a report from the C.D. Howe Institute. In When Nightmares Become Real: Modelling Linkages between the Financial Sector and the Real Economy in the Aftermath of the Financial Crisis, authors Philippe Bergevin, Pierre Duguay and Paul Jenkins say that the complexity of these linkages have been neglected in the models typically used to guide monetary policy – the question is how to remedy deficiencies in policymakers’ economic models of the world, so that they can be used with confidence in guiding policy.


Paul Jenkins
Paul Jenkins, Former Senior Deputy Governor and Chief Operating Officer, Bank of Canada; Adjunct Professor, Carleton University, Senior Fellows

Paul received his M.Sc. in economics from the London School of Economics and Political Science in England and his B.A. in economics from the University of Western Ontario in London, Canada. From 2003 to 2010, Paul served as senior deputy governor of the Bank of Canada. He was the bank’s chief operating officer and a member of its board of directors.

Pierre Duguay
Pierre Duguay, Former Deputy Governor, Bank of Canada, Research Fellows

Pierre Duguay served as a Deputy Governor of the Bank of Canada from January 2000 until his retirement from the Bank in July 2009. As a member of the Bank’s Governing Council, he shared responsibility for decisions with respect to monetary policy and financial system stability, and for setting the strategic direction of the Bank.