Wednesday, July 23, 2014

Mark Carney violates the ethics of Adam Smith that he himself emphasizes.

Mark Carney, Governor of the Bank of England, in the Commonwealth Games Business Conference, Glasgow 23 July 2014, in a speech titled “Winning the economic marathon” stated:

“Adam Smith emphasized the importance of conduct, or what he referred to as ‘the established rules of behavior,’ by which ‘many men behave very decently, and through the whole of their lives avoid any considerable degree of blame. Those established rules of behavior – social capital – underpin the functioning of the free market. In short, to be effective, markets must also be fair”

And in this respect Mark Carney, as a bank regulator, as the Chairman of the Financial Stability Board, should take note that he himself, by approving of risk-weighted capital requirements for banks, those which discriminate against those who are already discriminated against by being perceived as “risky”, is not behaving fairly, distorts the functioning of the free markets, and is in utterly noncompliance with what “Adam Smith emphasized”.