Carney does not seem to be aware, but central bankers’ groupthink today unites once again around the “normalcy” of a single policy: financial globalisation, or unfettered financial capitalism. In other words, the deregulation and globalisation of markets in money, goods, services, property and labour is once again the dominant “policy”. And no central bank governor or Treasury politician or official deviates from it.
The remedy for economic failures caused by “the policy” of financial globalisation is not very different from bloodletting, caused by the automatic deflationary policy machinery so revered by Montagu Norman and fellow architects of the Great Depression. Think Greece, Argentina and Turkey… and now South Africa, Indonesia and Malaysia.