Is Mark Carney the next Alan Greenspan…?



Albert Edwards mentions BoE Chair Mark Carney in less than flattering terms:

With Dylan Grice’s departure I found myself reading his collected works 2009-2012, which we have published in hard copy. I didn’t feel sad. It wasn’t like the time I split up with my girlfriend and was getting maudlin listening to Dido albums. I was getting tearful though reading ‘Cred and Credulity’ – the best of Dylan.

I shed tears of despair as I was reminded of the blundering incompetence of our overconfident policymakers, whose interventions, despite their best intentions, seem to bring about financial crises with increasing rather than decreasing regularity (see chart below). I felt the same rising anger I felt in the run-up to the 2008 crisis at what central bankers, and Alan Greenspan specifically, were doing.

We’ve had some classic examples of Central Bank ‘bull’ recently. First comments from the incoming Bank of England Governor, Mark Carney, and second an interview in the Financial Times from the outgoing chair of the UK’s Financial Services Authority, Adair Turner (I include him as a central banker as he was in charge of banking regulation). Both confirmed my view that the most dangerous thing about the current conjuncture is the absolute conviction among our central bankers that they can cont7rol events.

Edwards advice is “Don’t do something, just stand there!”

So much for a honeymoon period . . .



Is Mark Carney the next Alan Greenspan…?
Albert Edwards
Société Générale, 8 February 2013

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