Paul Beaudry served as Deputy Governor from February 2019 until his retirement from the Bank of Canada in July 2023.
As a member of the Bank’s Governing Council, he shared responsibility for decisions regarding monetary policy, the stability of the financial system and the strategic direction of the Bank. Mr. Beaudry also oversaw the Bank’s analysis of international economic developments and served as the Bank’s G7 and G20 Deputy.
Before joining the Bank as Deputy Governor, Mr. Beaudry was a professor at the University of British Columbia’s Vancouver School of Economics. He began his academic career in 1989 as an assistant professor at the Université de Montréal. From 1990 to 1994, he was an assistant professor at Boston University. Mr. Beaudry has been a visiting professor at the European University Institute, the Massachusetts Institute of Technology (MIT), Nuffield College at Oxford University, Sorbonne (Paris I) and the University of Toulouse. From 2009 to 2010, he was the Chair in Economics at All Souls College at Oxford University.
Mr. Beaudry is also a two-time winner of the Bank’s Research Fellowship Award. He was awarded the Canada Research Chair in Macroeconomics (2000–15) and was the 2008 recipient of the John Rae Prize from the Canadian Economics Association. He is a Fellow of the Royal Society of Canada and a Research Associate at the National Bureau of Economic Research.
Born in Montréal, Quebec, Mr. Beaudry received a bachelor’s degree in economics from Laval University, a master’s degree in economics from the University of British Columbia and a PhD in economics from Princeton University.
Bank of Canada Deputy Governor Paul Beaudry talks about the Bank’s latest interest rate announcement and the importance of keeping inflation expectations well anchored to prevent high inflation from becoming entrenched.
Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to show that the major change driving household asset demand over this period is instead an increased desire—for a given age and income level—to hold assets.
When countries are hit by supply shocks, central banks often face the dilemma of either looking through such shocks or reacting to them to ensure that inflation expectations remain anchored. In this paper, we propose a tractable framework to capture this dilemma and then explore optimal policy under a range of assumptions about how expectations are formed.
Over the last few decades, real interest rates have trended downward. The most common explanation is that this reflects depressed demand due to demographic, technological and other real factors. We explore the claim that these trends may have been amplified by certain features of monetary policy.
The Bank of Canada has taken many actions to support Canadians since the COVID-19 pandemic struck. These include large-scale asset purchases—buying a substantial amount of government bonds and other financial assets. Our purchases serve two purposes. They help key financial markets work properly, and they can help increase spending in the economy. This leads to more employment and stronger economic growth.