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[De]Globalisation and Inflation – Mark Carney - Governor, Bank of England


Tuesday, September 19, 2017  06.31AM / BoE

Speech By Mark Carney, Governor Of The Bank Of England at the 2017 IMF Michel Camdessus Central Banking Lecture, 18 September 2017, London.

During his term as Managing Director, Michel Camdessus oversaw the second great wave of globalisation.The Berlin Wall fell, capital controls were liberalised, the euro was constructed, and China prepared to join the WTO. Product and financial markets became increasingly integrated, with trade growing at an annual rate of 10% and capital flows of 20%. The effective global labour force doubled, and more than a billion people were lifted out of poverty.

Central banks are now grappling with one consequence of such enormous achievements – the impact of globalisation on inflation.

All central banks must consider the cyclical relationship between global slack and domestic inflation; the degree to which secular forces from globalisation affect local inflation dynamics; and how global factors influence the stance of domestic monetary policy itself. And now some central banks may need to consider the implications for price stability if the process of globalisation were to slow or go into reverse.

These issues are particularly relevant to the Bank of England as the UK inflation outlook will be importantly influenced for some time by a process of de-integration under Brexit.

Today, I would like to draw on this example to illustrate how global factors influence domestic inflation dynamics and the ability of central banks to achieve price stability.

Read the full speech

About Mark Carney - Governor, Bank of England
Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Prudential Regulation Committee. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013. 

In addition to his duties as Governor of the Bank of England, he serves as Chairman of the Financial Stability Board (FSB), First Vice-Chair of the European Systemic Risk Board, a member of the Group of Thirty and the Foundation Board of the World Economic Forum. 

Mark Carney was born in Fort Smith, Northwest Territories, Canada in 1965. He received a bachelor’s degree in Economics from Harvard University in 1988. He went on to receive a master’s degree in Economics in 1993 and a doctorate in Economics in 1995, both from Oxford University. 

After a thirteen-year career with Goldman Sachs in its London, Tokyo, New York and Toronto offices, Mark Carney was appointed Deputy Governor of the Bank of Canada in August 2003. In November 2004, he left the Bank of Canada to become Senior Associate Deputy Minister of Finance. He held this position until his appointment as Governor of the Bank of Canada on 1 February 2008. Mark Carney served as Governor of the Bank of Canada and Chairman of its Board of Directors until 1 June 2013. 

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