David Longworth served as a Deputy Governor of the Bank of Canada from April 2003 until his retirement from the Bank in March 2010. 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.
Mr. Longworth joined the Bank of Canada in 1974 in the Special Studies Division of the Research Department. In 1984, he was appointed Assistant Chief of the Special Studies and Balance of Payments divisions in the International Department and was named Deputy Chief of the department the following year. In 1987, Mr. Longworth moved to the Department of Monetary and Financial Analysis to become Research Adviser and later, Chief. He was appointed Chief of the Research Department in 1996 and Adviser to the Governor in 2000.
Born in Edmonton, Alberta, Mr. Longworth received a bachelor of science degree in mathematical statistics in 1973 and a master’s degree in economics in 1974, both from the University of Alberta. He also studied at the Massachusetts Institute of Technology, where he graduated with a PhD in economics in 1979.
With your professional interests in foreign exchange, money markets, capital markets, and derivatives, I'm sure the past year and a half has been exciting and interesting – if those are the right words. We've been living through a period of astonishing financial turbulence, historic marketplace losses, and serious threats to financial stability.
The financial turbulence over the past year has been costly and difficult for many individuals and financial institutions; it's been challenging for policy-makers; and it's had implications for the overall economy.
Today, I'd like to discuss some of the crucial issues that we have been dealing with during this period. I'll begin with a brief overview of some key events that have led to the turbulence that continues to upset financial markets and that greatly contributed to the remarkably wide credit spreads that we now witness.