BOESSENKOOL: Why Carney's UK Experience Matters

Carney was undoubtedly shaped by his time as Governor of the Bank of England, and we’ve already seen evidence that Carneynomics borrows from his UK experience. To get ahead of any potential changes, it’s worth asking, “What does the UK do?”

Key Points: 

• Mark Carney’s UK experience (for example, Gordon Brown’s 1997 reforms) is a major influence on Carneynomics and is likely to drive Canadian federal policy shifts.
• We don’t know exactly what Carney thinks about Brown’s various reforms and other things the UK does, but things like financial supervision and pension rules are notable and worth considering.
• Financial institutions and pension funds should proactively assess potential reforms by asking “What does the UK do?” to prepare for policy shifts.

In his October 14 post on MBP Intelligence, Tyler explained the origin of Carneynomics’ move to split federal spending into operating and capital as follows:

“This isn’t a new idea. In fact, it’s not even a Canadian one. The shift is largely inspired by a series of reforms then UK Chancellor of the Exchequer, Gordon Brown, produced in 1997 as part of the “golden rule”.”