9 Economists Give Advice To Mark Carney (in GIF Form)

The Bank of England is getting a new governor, in the form of Mark Carney, the former governor of Canada’s central bank. The think-tank IPPR asked nine economists what they thought he should do when he starts the job.

1. @EconomistHULK’s advice

Bringing inflation down too soon would be disastrous, because the lower inflation, the slower the recovery in jobs and growth will progress.

So when you decide what to do about inflation, actually tell people – and George Osborne in particular – what facts are driving that decision.

(Don’t be this guy)

Make Osborne explicitly tell you that he wants to make people worse off in order to bring down inflation. Hopefully he won’t have the guts.

2. @izakaminska’s advice: Self-driving and electric cars, automated manufacturing and 3D printing are going to change the economy.

And some people are basically ignoring traditional money altogether.

Like bitcoin, the currency for Ron Paul voters and drug dealers.

Given all of that, shouldn’t we rethink how we measure GDP?

3. @DanRCorry says: Don’t be afraid of saying that fiscal policy has to play its part.

Listen to the independent members of the Monetary Policy Committee.

Get out around Britain and smell the coffee (and the labour market). There are massive regional inequalities, and you can’t make policy just for London and the south east.

4. @deanbaker13 says: It is not easy to clean up the mess after an asset bubble has burst.

This means that central banks need to stop the dangerous bubbles growing in the first place

The initial route is simple: talk.

Central banks have the public’s ear. If they not only argue for the existence of a bubble but carefully document the case with research as well, it will be harder for the public to laugh off the evidence.

5. Tim Allan says: The problem: You arrive with high expectations. Ringing endorsements from across the political spectrum. A track-record of success. And you clearly have an engaging personality.

The solution: You need quickly to establish your own overarching narrative.

And in terms of how you engage with the media, be extremely careful not to have favourites.

6. @delong says: It is time for the governor to announce that a (somewhat) weaker pound is in Britain’s (short-run) interest – and to make it so.

7. @Frances_Coppola says: Monetary policy stops working once interest rates near zero…

So you might have to start doing things which are really the Chancellor’s job

Like, have you thought about taxing cash withdrawals? That could work.

8. @jdportes says: If we want things to be different, then we will have to do something different, not just talk about it.

Monetary policy alone is highly unlikely to be enough to put us back on track for sustainable and balanced growth.

This will require you and the chancellor to work together, not to try to shuffle responsibility on to each other.

9. @AnnPettifor says: Britain ranks alongside Japan as the most indebted of the larger economies.

McKinsey estimates UK private debt at an extraordinary 427 per cent of GDP, vastly exceeding gross public debt at 94 per cent of GDP.

Osborne can solve your problem by becoming a borrower and spender of last resort. And you can solve his problem by monetising some government debt.

So your first task, I suggest, is to persuade the chancellor that financial stability depends on this coordination.

Seriously, good luck with this.

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