Mark Carney is known as one of the most influential central bankers of our time, whose unique career path extends from the financial capital of the world to international headquarters. Born in Toronto, Karni was educated at the University of Yale and Harvard College, became a scholarshipist at the University of Oxford and began his professional activities at Goldman Sachs, and later at the world bank. This rich experience and attention to details in combination with a deep understanding of the economy allowed him to take the posts of the Canadian bank manager and then the Bank of England. His work is characterized not only by technical accuracy, but also by the ability to build long -term trust in the market and society. Carni managed to lead the financial stability council (FSB), to influence the G20 solutions and speak to the International Monetary Fund, forming the global agenda of "green" and sustainable financing. Such diverse experience and constant dialogue with key players in the world economy allow his career to be considered a unique and deserving detailed study.

His ability to link macroeconomic forecasts with the practical tools of central banks and anticipate the future development of the market became especially noticeable. It was these qualities that helped him more than once to balance between the need for a hard policy to contain inflation and a flexible response to acute crisis situations. The combination of scientific severity, experience in capital markets and political diplomacy skills makes Mark Karney’s path as an exceptional example of how one person is able to change the approaches at once in several largest financial institutions of the world.

Carney's approach in Canada Bank

When in February 2008, Mark Carney took office as manager of Canada, the country was already on the threshold of a global financial storm. At the moment when Lehman Brothers brought down the world market, Carney retained the official inflation target at the level of 2 %, but revised forecast models. He introduced more frequent reviews of external risks and permanent tracking of credit flows into regional banks. The central element of its strategy was regular public speeches with clumsy explanations of the reasons for each decision. Thanks to this, during 2008-2009, trust in the Central Bank remained at a fairly high level, despite the decrease in Canada GDP in the recession cycle. Carni simultaneously increased the volumes of short -term liquidity and retained buffer reserves in the national currency, which ensured additional flexibility in the vibrations of the Canadian dollar.

In addition to standard monetary measures, Karni actively promoted macroprudential regulation: together with the financial departments of the provinces, he developed a system of allowances for banking capital and stress tests that take into account the scenarios of falling raw materials. Such an interdepartmental format of interaction was innovative for Canada: state and private structures for the first time quickly joined the development of the rules, allowing the system to absorb external shocks. Moreover, Karni paid special attention to the development of secondary bond markets: initiatives to standardize the production of municipal and corporate loans facilitated the access of regional authorities and companies to financing in a crisis period.

The leadership of the Bank of England

In July 2013, Mark Carney accepted the leadership of the Bank of England, and his first steps again coincided with a serious test. The British economy balanced between the historically low growth rates and the high debt load of households. Carni retained the official rate at 0.5 % and the asset redemption program with a volume of almost £ 375 billion, but introduced the CountercyClical Buffer mechanism for banks. At the same time, he deployed the Forward-Hayding system, informing the investors in advance about the conditions and the procedure for increasing the rate. This tool helped reduce disagreements between official forecasts and market expectations, which is especially important for an economy with a developed debt market, where even hints of policies can cause short -term bursts of volatility.

A key check was the situation after the Brexit referendum in June 2016. The weakening of the pounds sterling more than 10 % spurred imported inflation and created pressure on the consumer sector. Carni, together with the Monetary Policy Committee (MPC), reduced the rate to 0.25 % and expanded the quantitative softening program to £ 435 billion. In addition, it increased supervision of the largest banks, demanding from them to increase its own buffers and re-model the scenarios, including where the EU trading agreement would not be reached before the end of 2018. These measures allowed the financial system to maintain fees, and the number of defaults on credit cards and mortgages remained relatively low in the next two years.

Influence in international financial institutions

In parallel with the national duties, Mark Carney held the post of chairman of the Council for Financial Stability (FSB) from 2011 to 2013 and formed the global agenda of the Central Bank Club. Under his leadership, the standards of Basel III were finalized, the methods for evaluating systemically significant banks were improved and new recommendations for stress testing in the G20 were implemented. Carni promoted the creation of “reserves of sustainability” aimed at containing a credit bubble during high liquidity periods. His reports at sessions of the International Monetary Fund and the World Bank were used as a basis for updating standards in a number of Asian and Latin American central banks.

One of the most noticeable achievements was the initiation of a working group on climatic financial risks-Task Force on Climate-RELEETED FINANCIAL DISCLOSURAS (TCFD). Launched in 2015 with the assistance of the Financial Stability Board, this group developed standards for disclosing data on the influence of climate change on the balance of companies and banks. TCFD combined regulators, private investors and institutional funds, which made it possible to create a unified methodology to evaluate “green” and “carbon -like” assets. Based on the recommendations of TCFD, a number of central banks and insurance companies introduced mandatory requirements for the disclosure of climatic risks, which has become one of the key elements of the formation of a sustainable financial market of the XXI century.

Conclusion

The path of Mark Karni at the posts of the Bank of Canada and the Bank of England, as well as in international financial institutions, demonstrates how a competent combination of traditional monetary policy with innovative macroprudentum instruments can ensure the stability of the economy in various conditions. In Canada, he proved the effectiveness of flexible targeting and interaction with internal and regional authorities. In the UK - the ability to quickly adapt solutions to geopolitical turbulence and maintain market trust through transparent communication. And in the global arena, his contribution to regulation standards and climatic initiatives built the basis for the long -term strengthening of financial stability.

The legacy of Mark Karney will have long been analyzed by economists and practices of central banks. His approaches to the forward-guing, “green” financing and macropruential buffers have already changed the standards of regulation and behavior of private investors. Carni's experience shows: the success of monetary policy depends not only on numbers and models, but also on a high level of trust in society, dialogue with business and willingness to build bridges between national interests and global goals. In the era of growing climatic, debt and systemic risks, the lessons of his career will become a support for new generations of leaders of world financial architecture.