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We will have some more reader thoughts on the new Canadian PM next week, but for now, we have a very interesting British perspective from reader S.D. in York, England, UK and we wanted to share it:
Some British thoughts on the new Canadian Prime Minister.
Mark Carney is (currently) British, as well as Canadian. But it wasn't always a given. Of course, we all know he served as Governor of the Bank of England from 2013 to 2020, making history as the first non-British citizen to hold the role since the Bank was founded in 1694. But his path to U.K. citizenship was... let's just say, not exactly rushed.
In 2018, after much speculation, Carney finally committed to becoming British. This came after years of tabloid chatter, with a general feeling that he was dragging his feet. Given his high-profile role, many expected him to apply much sooner. But after the 2016 Brexit referendum, it became clear that Carney would be staying in his post beyond his initial 5-year term—so, perhaps, taking the citizenship plunge made more sense at that point.
Tenure and Departure
The reason Carney served beyond his initial 5-year term was that economic and political uncertainty from Brexit led the government to extend his tenure twice, first to 2019, then again to 2020. By the time he finally stepped down in March 2020, he'd outlasted multiple Prime Ministers. His successor, Andrew Bailey, took over just as the COVID-19 pandemic was beginning to shake the global economy. So, he was not a central part of the response to that economic crisis.
How the Brits See His Role in the U.K. Economy
Carney's time at the Bank of England saw some of the most defining economic moments in recent U.K. history. His job wasn't just about keeping inflation in check; he also had to navigate political turbulence and global financial shocks. Here are the three biggest economic moments under his watch:
- Post-Financial Crisis Recovery: Carney took the reins in 2013, when the U.K. was still in post-2008/09 crash recovery mode. His policies aimed at maintaining financial stability and encouraging economic growth.
- Brexit (2016): The U.K.'s vote to leave the E.U. sent shockwaves through the British economy. Carney and the Bank of England stepped in with emergency measures to prevent financial instability, but his warnings about Brexit's risks earned him sharp criticism from Leave supporters.
- COVID-19 Pandemic (2020): Just as Carney was exiting, the pandemic arrived. The Bank of England quickly rolled out emergency support for the economy, some of which had been put in place under his leadership.
Public and Political Perceptions: Divisive, But Respected
Carney's time in office wasn't without controversy. His decisions were often scrutinized, and while some saw him as a stabilizing force, others viewed him as too involved in political matters.
- Politicians: Some praised his steady leadership, but pro-Brexit politicians weren't thrilled with his warnings about economic fallout. His forecasts of potential economic slowdowns due to Brexit were labeled as "Project Fear" by critics. And he was "The High Priest of Project Fear."
- Public Opinion: The general public was split. Some saw him as a competent technocrat who kept things running smoothly. Others felt his policies leaned too heavily in favor of banks and financial institutions rather than everyday Britons.
What Legacy Did Carney Leave Behind?
Carney's impact on the U.K. economy and financial system goes beyond his term as Governor. His key contributions include:
- Financial Stability: He played a major role in strengthening the U.K.'s financial system in the post-2008/09 crisis era and improving regulatory frameworks.
- Climate Change Advocacy: Carney pushed the financial world to take climate risks seriously, helping make the Bank of England a leader in sustainable finance.
- Global Presence: Even after leaving the Bank of England, he remained a prominent voice in economic and political discussions, including appearing frequently in U.K. media during the 2024 U.S. election season.
Final Take?
Love him or loathe him, Mark Carney was one of the most influential figures in the U.K. economy over the last two decades. Whether you see him as a steady hand or a political meddler, his tenure at the Bank of England was anything but forgettable.
P.S.: Carney was also of Irish nationality but just surrendered that in the last week. By the time this is read, he might not be British.
Thanks, S.D.! (Z)