Toni Gravelle was appointed Deputy Governor of the Bank of Canada, effective October 1, 2019. In this capacity, he is one of two deputy governors responsible for overseeing the Bank’s financial system activities and is responsible for the Financial Markets Department (FMD). As a member of the Bank’s Governing Council, he shares responsibility for decisions with respect to monetary policy and financial system stability, and for setting the strategic direction of the Bank.
Prior to his appointment, Mr. Gravelle served as Managing Director of FMD. 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 2013 when he was seconded to the Department of Finance to serve as General Director, Financial Sector Policy Branch. He returned to the Bank in 2015 upon his appointment as Managing Director of FMD.
In addition to his extensive experience with Canada’s financial sector and research at the Bank, Mr. Gravelle 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 is a native of Corbeil, 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.