The Bank of Canada recently announced the selection of three external experts who will be conducting an independent assessment of the review of its policy actions taken during the COVID-19 pandemic. This decision was made as part of the Bank’s commitment to conducting a thorough internal review of its exceptional actions, which include market-functioning programs, quantitative easing, and extraordinary forward guidance.
The three external experts chosen for this task are Pablo Hernández de Cos, Kristin J. Forbes, and Trevor Tombe, who bring a wealth of experience in central banking, economic policy research, and financial policy. Their role will be to provide an unbiased assessment of the Bank’s review process and ensure that the lessons learned from the pandemic experience are utilized to enhance the Bank’s response to future crises.
Bank of Canada Governor Tiff Macklem emphasized the importance of being a learning organization, especially in times of crisis. He highlighted the significance of learning from past experiences to improve future responses and ensure the best possible outcomes for Canadians. The diverse perspectives of the external experts are expected to provide valuable insights that will help shape the Bank’s future policy decisions.
The upcoming pandemic review will focus on analyzing the context and timeline of the Bank’s policy actions, evaluating their effectiveness, and extracting key lessons learned. It will also establish a framework for addressing potential future policy measures in the event of another crisis. The external expert assessment will play a crucial role in ensuring that the Bank’s review is comprehensive, balanced, and focused on identifying the most relevant lessons for informing future policy decisions.
Both the internal review and the external assessment are scheduled to be released towards the end of the year, offering transparency and accountability to the public regarding the Bank’s pandemic policy actions. By engaging external experts and committing to a thorough review process, the Bank of Canada aims to enhance its preparedness for future challenges and continue to deliver effective policies for the benefit of all Canadians.
