Pierre Duguay served as a Deputy Governor of the Bank of Canada from January 2000 until his retirement from the Bank in July 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. Duguay joined the Bank in 1973 as an Economist in the Research Department. In 1978, he moved to the Department of Monetary and Financial Analysis as Senior Economist. He was appointed Deputy Chief of the Research Department in 1984, Chief of the Department of Monetary and Financial Analysis in 1987, Chief of the Research Department in 1991 and Adviser to the Governor in 1992.
Born in Verdun, Quebec, Mr. Duguay received a bachelor of economics degree from the Université du Québec à Montréal in 1971 and a master’s degree in economics from the Université de Montréal in 1974.
While the CPI is the most commonly used measure to track inflation, it is not fully consistent with a true cost-of-living index (COLI). Although the official treatment of durable goods and housing in the CPI represents an acceptable compromise in the current environment of low and stable inflation, Sabourin and Duguay suggest that it would be worthwhile to consider treating housing and durables in the same way and bringing the actual CPI closer to a COLI. This could be accomplished by employing an enhanced user-cost approach to calculate the imputed cost of the services provided by the use of durable goods or housing.
At year-end 2009, there were 1.8 billion bank notes in circulation, with a total value of $55.5 billion – approximately $1,630 per Canadian. The Bank of Canada is not responsible for coins. Decisions on coinage rest with the federal government, in particular, the Department of Finance, and with the Royal Canadian Mint.
As we have consistently emphasized, stabilization of the global financial system is a precondition for economic recovery, both globally and in Canada. To that end, policy-makers around the globe have acted aggressively and creatively by initiating a series of unprecedented actions aimed at stabilizing the global financial system.
The extraordinary turmoil of 2007 and 2008 has brought to the fore many issues and challenges, most of which will be with us for some time as we deal with what has become the deepest financial crisis since the 1930s. Policy-makers around the world have taken bold and timely steps to deal with the financial instability and economic crisis, but it will take time for confidence to be restored and for markets to become fully functional again.