The global economy needs help beyond the experiments in monetary policy that the world’s central banks are undertaking, says Mark Carney, the governor of the Bank of Canada and incoming governor of the Bank of England.
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Do you think that we're expecting central bankers to carry too much of the economic water at a time of gridlock in a lot of countries. Fiscal austerity or at least you know a feeling that fiscal authority can't -- are -- -- in central bankers do too much. Well I certainly so I mean some people may be expected to bankers to do too much but I think as a whole. The central banks have pretty clear mandates pretty clear agreements and the important thing is to execute against those. Those agreements and stay within the bounds of the the actions that are being required central banks. In some jurisdictions are extraordinary. Because of the extraordinary forces -- -- -- on -- But I think if the if if the fundamental questions is -- central banks in and of themselves delivers sustainable growth. The answers no if they can provide the conditions for growth that can provide. Conditions of price stability financial stability they can help with the balance sheet repair they can very importantly and that's what America I mean you see you're doing. Help with the transition. In their case to a more sustainable. -- your query economic union there. But they can't deliver the long term growth that's necessary that needs to come through. You know there's. True fiscal adjustment and fundamental structural reform. And now mark you've just mentioned these sort of knew an extraordinary economic conditions which central bankers need to respond. Some people wonder whether you guys have to wolves and maybe even have gap's board to keep that. I saw a headline recently declared its central bankers. Are flying warplanes. So are you flying blind you know -- with a -- The well I think the the point is that you certainly. -- you know we -- looking for. And you know we don't keep but the point. Analogy I can stretch it. You know if you if you're trying to do via our visual way we've -- there are instruments on the dashboard this is it time for higher -- You know instrument. Flight flying and whether they're leading indicators I mean there's the traditional indicators in the economy. And but very importantly in the financial. In the financial sector you have to know where to look. And I think those central banks that are -- -- policies do. And it'll be a little more specific because in the end this is about winning is the in dogs and his credit creation process really start to pick up. And so. One looks that asset liability -- is. Within financial institutions. Looks that right you credit creation indicators. Again with in the financial sector. In and of itself before that transmits to the real economy to get a sense as how all of this -- to make money that is -- through. To the other -- economy as leading indicators above and beyond traditional. Traditional real variables -- -- data so. No I wouldn't say I wouldn't agree it is you'd be surprised. With with the headline. But certainly in in extraordinary times. The vigilance and this degree of analysis is is greater than it is when things were before but then again maybe things could have been more vigilant and report. Maybe and if we're fine line central bankers have been quite realizing. We'll save that for the -- remorse.
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