The Bank of Canada has a target to keep inflation in a band of 1 per cent to 3 per cent per year, as measured by the consumer price index.CHRIS WATTIE/Reuters
As the Bank of Canada cranks up a committee to seek Mark Carney's replacement as governor, there's good reason to focus on internal candidates, lest the central bank hurt its ability to attract the best talent in more junior roles.
The central bank's top job has, the last two times, essentially gone to an outsider. David Dodge, who was appointed in 2001, came from elsewhere in government. Mr. Carney had spent a short stint at the bank, but had left for other roles in government for years prior to his final ascent to the role of governor in 2008. The last real career Bank of Canada person to get the position was Gordon Thiessen, way back in 1994.
Outsiders should have a shot at the job, as Mr. Carney and Mr. Dodge have certainly proven with their successful stints. But continually going beyond the walls of the bank at some point has to hurt the central bank's ability to hire the best and brightest for more junior roles, if the message is that there is no real path to the central bank's highest post internally. That runs counter to building a strong, healthy organization from the bottom up.
There would be a stronger argument for an outsider if there needed to be a cultural shakeup at the central bank (like what the Bank of England needs - and addressed by bringing in Mr. Carney.) But that's not the case.
In this selection process, if it's a tie on all other counts, the role should go to an insider.