When your economy has ground to a standstill and stayed there for a period of years, it would make sense to cast about for a new central banker whose approach was somewhat different. And by different we mean more successful.

British Chancellor George Osborne has done just that. And the Canadian fellow he’s chosen to run the Bank of England—who says the Tories aren’t interested in diversity?—has repaid him by promising to keep pushing his failed policies until Osborne is replaced by a member of the Labour Party in two years, and perhaps beyond.

“In my view, flexible inflation targeting—as practiced in both Canada and the U.K.—has proven itself to be the most effective monetary policy framework implemented thus far,” Mark Carney said, perhaps a bit generously in the second instance. But go on.

“It’s entirely possible, in fact probable, that the current stance of policy is consistent with the economy achieving escape velocity,” Carney told lawmakers…

“Although the bar for change … should be very high, it seems to me important that the framework for monetary policy -rightly set by governments and not by central banks – is reviewed and debated periodically,” Carney said.

Not only does finance minister George Osborne set the policy framework, there is no guarantee Carney could force through change even if he wanted to.

“You will be paid considerably less than English football managers and I think you will have more success than them,” one MP quipped. Undoubtedly so: It is hard to fail when the bar is set so low, with commensurately small responsibilities.

Carney sets high bar to change at Bank of England [Reuters]
Carney Promises BOE Flexible Future [NYT]

Comments (10)

  1. Posted by Guest | February 7, 2013 at 5:37 PM

    "It is hard to fail when the bar is set so low, with commensurately small responsibilities."

    But you manged it so well, Shazar

  2. Posted by 25th Hour of Charts | February 7, 2013 at 5:54 PM

    Shazar: Uhm, wow, lotta stuff happening with Dell these days
    Matt: Yea, yields on their bonds went way up after prices dropped when the deal got announced
    Shazar: Tanked? Why? I thought deals are good
    Matt: It's an LBO, it means they're going to take on a lot more debt
    Shazar: Uhm, what's the big deal with debt anyway
    Matt: Shazcan
    Shazar: It's, uh… Shazar
    Matt: Whatever, look… more debt means the company's bonds are riskier means people won't pay as much for them so prices go down and yields go up, got it?
    Shazar: Yeah.
    Matt: No, I didn't think so. That's why I'm making charts and you're handing out junk mail.
    Matt: You know, you're wearing a striped shirt with a striped tie, and have your dog dressed the same way you know that, right?
    Shazar: Yeah, I do it for the ladies.
    Matt: Oh – the ladies ever tell you that you look like a fucking optical illusion and an effeminate version of Dennis Kneale?
    Shazar: Yeah?
    Matt: Go away, disappear… come on
    Shazar: I'm outta here.

  3. Posted by Hans Moleman | February 7, 2013 at 6:53 PM

    You took 20 seconds of my life and I want them back.

  4. Posted by Hobbes | February 7, 2013 at 7:16 PM

    I'd rather be Canadian than Jon Shazar.

  5. Posted by Deleveraging | February 7, 2013 at 7:41 PM

    I believe the correct title of Mr. Osborne is Chancellor of the Exchequer. Was Bess aware that you posted this dribble with out her or Matt's approval?

  6. Posted by Shazar | February 7, 2013 at 7:45 PM

    You're still a loser

  7. Posted by Shazar | February 7, 2013 at 7:47 PM

    Kill yourself , loser. At least I got a job.

  8. Posted by Total long | February 8, 2013 at 10:59 AM

    Basically a dull man doing a dull job in the same way as the last dull man doing that job.

    People here are literally sleeping with excitement.

    Broadly -ve for sterling vs the USD & EUR

  9. Posted by Erwin | February 8, 2013 at 11:06 AM

    "Basically a dull man doing a dull job in the same way as the last dull man doing that job. "

    As oppose to … Banker,analyst and hedge fund managers?

  10. Posted by 2 cubes over | February 8, 2013 at 11:29 AM

    Kinda over the Shazar sucks meme at this point…