British economist Roberts reviews a speech delivered recently in Liverpool, England by a major influential of the US-led Empire: Mark Carney, the governor of the Bank of England, who offered his views on the state of global capitalism.
Mark Carney is the governor of the Bank of England. Formerly the head of the central Bank of Canada, some years ago he was headhunted to take over at the BoE on a huge salary and expenses.Carney starts off with a very reasonable observation:
This week he gave the Roscoe Lecture at Liverpool’s John Moores University, his first speech since the decision of the Brits to vote (narrowly) to leave the European Union. Carney took the opportunity to offer what his view of the state of global capitalism. And he does not make it sound good.
I will focus on the underlying causes and consequences of weak real income growth and inequality across the advanced world.
That’s because any doctor knows that the importance of diagnosing the underlying causes of the patient’s symptoms before administering the cure. Monetary policy has been keeping the patient alive, creating the possibility of a lasting cure through fiscal and structural operations. It has averted depression and helped advanced economies live to fight another day, so that measures to restore vitality can be taken.However, this major capitalist influential doesn't seem to know how to improve economic conditions:
It was up to governments now to turn things round. But given that Carney and his bank economists did not know why things had got so bad, he offered no real advice to governments on how to get productivity up, inequality down and real incomes restored.