When it was announced that former Bank of Canada governor Mark Carney was going to be speaking at this weekend’s Liberal convention, we got the usual amount of tongue-wagging from journalists and pundits who assumed that this would be the time when he announced he was running for the party. The Conservatives put out a nasty press release that considered him the “future leader of the Liberals,” as though this was a replay of the Michael Ignatieff trajectory. Carney didn’t make any announcements of future plans, but he did the next worst thing – he stated that he planned to support the Liberal Party in any way he could.
The Conservatives seem particularly sour on the guy that they appointed to head the Bank of Canada.
(Also, the notion he’s the next Liberal leader is frankly ludicrous). pic.twitter.com/crIKY4ItZo— Dale Smith (@journo_dale) April 9, 2021
This is bad. This is very, very bad. I have written about this before, but the Bank of Canada is an institution that needs to be scrupulously independent, much like the Supreme Court of Canada. Monetary policy is not to be trifled with, and the separation between fiscal policy (government and the Department of Finance) from monetary policy (Bank of Canada) is sacrosanct in our system. We had a bona fide political scandal about maintaining this separation decades ago, which was the Coyne Affair, and it led to changes that guaranteed the central bank’s independence. This is why, much like Supreme Court justices, former Bank of Canada governors need to maintain their scrupulous independence after office, because the danger of tainting the institution is too great. Because what are we going to see now? All monetary policy decisions will be viewed through the lens of partisan politics and opportunism – which is toxic to the institution. Opposition MPs will start badgering and hectoring the current Governor when he appears before committee and assuming partisanship in his advice and policy direction – something that we are already getting dangerously close to, as Pierre Poilievre tried to go after the Governor over the decision to buy bonds through the current fiscal crisis (which is perfectly sound expansionary policy at a time when we were seeing deflation instead of the kinds of inflation that the Bank is trying to target). This matters, no matter how many Liberal partisans seem to think that this is something they can just handwave away because he said nice things about them.
It's possible that an outcome of Carney's foray into partisan politics is a strict partisan lens being applied to future BoC appointments given the power and profile associated w/ the role. No one's political aspirations are worth damaging core institutions like the central bank. https://t.co/scORPPQnxW
— Rob Gillezeau (@robgillezeau) April 9, 2021
Anyone trying on the 'yabbut Carney's not Governor anymore' hasn't been paying attention. This story has been smouldering for almost a decade.
— Stephen Gordon (@stephenfgordon) April 10, 2021
How long before Supreme Court of Canada justices get to have "a personal opinion" about partisan politics again?
Because a Bank of Canada Governor should be as scrupulously independent as a Supreme Court justice. https://t.co/exivy17YNG— Dale Smith (@journo_dale) April 10, 2021
If Liberals had a modicum of respect for institutions that they claim they have when those institutions are under attack by the Other Guys, then they wouldn’t keep doing this, and yet it happens time and again. They undermined the Senate, the Governor General, and now the Bank of Canada. They have become an absolute menace to the systems and institutions that are at the heart of how our country operates. This is a problem.