Charlie Rose Talks to the Bank of England's Mark Carney

The governor of the Bank of England discusses locking in growth, defanging the next crisis, and the debate over austerity
“The scale of austerity in the United States in the last year has dwarfed anything in Europe” Photograph by Simon Dawson/Bloomberg

Describe your thoughts on setting policy.
Monetary policy got itself into a cul-de-sac where it didn’t take financial markets seriously. We need to provide a lot of stimulus to the U.K. economy. We’ve got big headwinds from Europe, from the currency, from ongoing deleveraging. But that stimulus can create risks. We need to take other steps in order to reduce those risks, because if we don’t, we’re going to create bigger problems, and we’ll have to pull back too soon on monetary policy, which is the last thing we want to do. If you do smaller things early on, you don’t have to do really big things later. There’s an element of anticipation, and that’s what we’ve tried to do in the U.K.

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