Act III. Towards a new balance: The shape of the new economic order
An interview with Mark Carney, Governor, Bank of Canada
Mark J. Carney is Governor of the Bank of Canada. Mr. Carney was appointed Governor of the Bank of Canada, effective 1 February 2008, for a term of seven years. As Governor, he is Chairman of the Board of Directors of the Bank.
Born in Fort Smith, Northwest Territories, Mr. Carney received a bachelor's degree in economics from Harvard University in 1988. He received a master's degree in economics in 1993, and a doctorate in economics in 1995, both from Oxford University.
John Micklethwait is Editor-in-Chief of The Economist. Before that he edited the US section of the newspaper (1999 - 2006) and ran the New York Bureau for two years, having edited the Business Section of the newspaper for the previous four years. His other roles have included setting up The Economist's office in Los Angeles, where he worked from 1990 - 1993 and being Media Correspondent.
He has covered business and politics from the United States, Latin America, Continental Europe, Southern Africa and most of Asia. He is a frequent broadcaster and has appeared on CNN, ABC News, BBC, Start the Week and NPR. He is the co-author of The Witch Doctors, A Future Perfect: the Challenge and Hidden Promise of Globalisation, The Company: A Short History of a Revolutionary Idea and The Right Nation, a study of conservatism in America, with Adrian Wooldridge, also an Economist journalist.
Mark Carney, Governor of the Bank of Canada, discusses the continuing financial crisis looming over Europe. He offers his views on the recent proposal to expand the European Financial Stability Facility (EFSF), as well as the effect that the crisis is having on Canada and the rest of the world.
Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. It is directed by the Canadian Ministry of Finance; all profits go to the Receiver General of Canada.
Weekly magazine of news and opinion, founded in 1843 and published in London, generally regarded as one of the world's preeminent journals of its kind. It gives thorough and wide-ranging coverage of general news and particularly of international political developments that bear on the world's economy. In accord with the views promoted by its founders and conveyed by legendary Economist editor Walter Bagehot, the publication maintains the position that free markets typically provide the best method of running economies and governments. North America accounts for about half of its total readership.
Some Facts about Bank of Canada Governor Mark Carney
- At the time of his appointment, Carney was the youngest central bank chief in both the G8 and G20.
- Carney spent 13 years working in the private sector at Goldman Sachs. While this time meant he did not have much experience working in public policy, he did have a lot of experience behind the scenes, making deals.
- Upon taking the position of governor of the Bank of Canada, he made it known that he wanted to focus on global markets that shape much of Canada’s economy, and also encourage the bank to pay closer attention to financial markets and investments.
- Another one of Carney’s fundamental priorities was to ensure “low, stable and predictable” inflation, which is what he predecessor had also done.
- His management of the Bank of Canada, during three years of global economic crisis, has been highly praised by observers, saying that Carney has “phenomenal credibility globally.”
- He has been lauded for running an expansive monetary policy to soften the blow of the global economic downturn, and has also cut interest rates to their lowest level in Canada’s history.
- In 2009, the Financial Times placed him on the list of “Fifty who will frame a way forward” saying that with his experience at Goldman Sachs, and his time spent as an official attending international meetings, “he is well placed to understand the pressures of both banking and regulating.”
- Time magazine placed him on the 2010 Time 100 list, and commended his “straight talk” - warning Canadians not to take on too much personal debt - as something people rarely hear from a someone whose job it is to boost the economy.
- In addition to his duties as Governor of the Bank of Canada, he serves as Chairman of the Financial Stability Board and as a member of the Board of Directors of the Bank for International Settlements. He is also a member of the Group of Thirty, and of the Foundation Board of the World Economic Forum.
- In a recent speech titled Growth in the Age of Deleveraging , Carney discussed how Canada can grow in an environment of global deleveraging and the “debt super cycle.” He also said that “Europe’s problems are partly a product of the initial success of the single currency. After its launch, cross-border lending exploded.... Over time, competitiveness eroded. Euro-wide price stability masked large differences in national inflation rates.... Growth models across Europe must radically change.”
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Watch An Interview with Bank of Canada Governor Mark Carney