Thursday, December 8, 2016
Meeting with the Governor of the Bank of England
Monetary policy - a 'friendly ghost'
Moira O’Shaughnessy spoke for FPC at a private round-table discussion with Mark Carney and 12 delegates from businesses in the North West. Views were invited as to how business can do more to engage with local communities, and encourage economic growth in the region.
The private briefing was organised by Liverpool John Moores University and Community Foundations Merseyside. Mark Carney went on to deliver the Roscoe Lecture to an audience of over 1,500 and despite causing a stir by admitting to being an Everton supporter rather than a Red he was very well received.
His speech echoed many of the themes highlighted by our own independent investment economist Peter Stanyer.
You can download a transcript here: The Spectre of Monetarism
Defending his stance on low interest rates and quantitative easing the Governor suggested it has been the only game in town in recent years, and that it has been 'keeping the patient alive' over what he referred to as 'the first lost decade since the 1860s'.
He was clear that much is beyond the Bank's control, but acknowledged the sense of isolation and detachment many feel. His understanding and concern for those who are struggling to make ends meet was evident as he called on the government to do more to address the inequalities in our society.
'Many citizens in advanced economies are facing heightened uncertainty, lamenting a loss of control and losing trust in the system.
'To them, measures of aggregate progress bear little relation to their own experience. Rather than a new golden era, globalisation is associated with low wages, insecure employment, stateless corporations and striking inequalities.'
Businesses must play their part too and Carney warned of the spectre of mass unemployment as technology advances apace over the next decade, highlighting that significant investment in re-skilling and training should be at the top of everyone’s agenda.
He praised the work of Community Foundations throughout the UK - which follow the model of those in his home country, Canada - and urged businesses to focus their Corporate Responsibility Policies on areas which will have a positive economic and social impact.
You can find out more about your local Community Foundation and how they're working with businesses in your area here: http://ukcommunityfoundations.org
Save the date
Our next business lunch is scheduled for Thursday 23 February at the Titanic Hotel, Liverpool. The theme is the Northern Powerhouse and what it means for businesses in the region – more details to follow.