Toni Gravelle was appointed Managing Director of the Financial Markets Department (FMD), effective 19 May 2015. In this capacity, he is responsible for policy formulation and execution of the Bank’s financial market activities as they relate to monetary policy implementation and financial system liquidity. Mr. Gravelle also oversees domestic debt and foreign reserve operations on behalf of the Government of Canada. These activities—along with a range of research, analysis and policy advice related to domestic and international financial markets—contribute to the Bank’s monetary policy mandate and its role in the promotion of financial system stability and efficiency.
Mr. Gravelle returned to the Bank at the time of his appointment following a secondment to the Department of Finance where he was General Director, Financial Sector Policy Branch. He first joined the Bank in 1996 as an analyst and went on to hold various positions within FMD, including Assistant Director. In 2008, he was appointed Deputy Managing Director of the Financial Stability Department, a position he held until he was seconded to Finance in 2013.
Mr. Gravelle brings to his current role deep expertise in financial stability and markets, as well as a record of contributions to international financial reform. In addition to his extensive experience in financial sector policy and research at the Bank, he was an economist at the International Monetary Fund (IMF) from 2002 to 2005, participating in the financial system stability assessments of France and Senegal and contributing to the IMF’s semi-annual Global Financial Stability Report.
Mr. Gravelle was born in North Bay, Ontario, and holds a Ph.D. in Economics from Western University.
In this paper, we define a financial institution’s contribution to financial systemic risk as the increase in financial systemic risk conditional on the crash of the financial institution. The higher the contribution is, the more systemically important is the institution for the system.
To investigate the extent to which the transparency of the Bank of Canada's monetary policy has improved, the authors examine empirically – over the period 30 October 2000 to 31 May 2007 – the reaction of Canadian financial markets to official Bank communications, and in particular their reaction to the recent inclusion of forward-looking policy-rate guidance in these communications.