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Can Carney Cope?

Following Mark Carney's recent appointment as governor of the Bank of England, optimism is high regarding his future of Britain's economy. (Thumbnail credit Photo credit: theseoduke)

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Following Mark Carney's recent appointment as governor of the Bank of England, optimism is high regarding his future of Britain's economy.

Surprisingly, the Labour opposition has not expressed any opposing view to the government's appointment of Carney, suggesting that both parties share a common economic perspective.

This consensus sends a confident message to future investors that Britain will still remain a "safe haven" in years to come.

Politically however, Labour may well end up missing an opportunity. Although Carney is credited with guiding Canada through the financial crisis of 2008 relatively unscathed, it is worth noting the structural distinctions between the British and Canadian economy.

Britain relies far more on the financial services sector, whereas Canada's economy is fuelled by a demand for their natural resources (something Carney can hardly take credit for).

Canada also survived the global crisis due to the existence of stringent financial regulation, brought about by the disastrous financial
crisis of the 1990s. It must be noted however, that this action was prompted by the Federal Government, and not Carney.

Some may argue that Carney could end up experiencing a cultural shock when he returns to Britain, given the evolution of the financial
industry since he last worked here.

Saying that, Carney has vast experience in dealing with international markets, as seen when he led the G20 Financial Stability Board.

The FSB was able to shock the world into implementing global standards within the financial industry, and the coalition government are confident that he can do the same in transforming the fortunes of Britain's ailing economy.

Let us hope that this uncommon man can shape Britain's financial system into reform, and that his reputation has not merely been built by good fortunes within Canada's economy.

After all he managed to convince the interview panel he can, the first foreigner to attain this role in its 318-year history.

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