The last week of November, Mark Carney was elected as the new Governor of the Bank of England.
Known as “Old Lady” of of Threadneedle Street, the Bank of England aims for maintain monetary and financial stability and thereby contribute to the health of the British economy.The Bank of England was founded in 1694, was nationalized on March in 1946 and became an independent institution of the Government in 1997. However, were Cameron, Prime Minister, and George Osborne, Minister of Economy, who announced Mark Carney as Governor. It means that The Bank of England and The British Government still closely related.
The current governor, Mervyn King, has been in charged for ten years, but he couldn’t solve economics crisis. That is one of the reasons why he is being substituted.
It has been a great surprise Carney´s choice because for months sounded the name of Paul Tucker as favourite substitute of M. King. Although his option seemed to reduced when Mr. Trucker was associated to Libor scandal and Barclays directors. Another candidate for the position was Lord Adair turner, chairman of Financial Services Authority.
Mark Carney, aged 47, despite of being a surprise for the position, is considered one of the best economists in the world and actually, he is the current Governor of The Bank of Canada. Osborne said that Carney will bring a new perspective to the British economy. His main objective is to improve British economy and solve the crisis.
Carney has an eight years term and he will have more power than M.King. He will have to set up the interest rates and to control the inflation. He will have more control on the financial system in order to prevent economic crisis.
According to the Government reform, The Bank of England will monitor the institutions, as a consequence to maintain financial stability.
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