Greenspan Set Carney on Path to Political Stardom
The Canadian prime minister’s ascent is as much a reflection of modern banking as a repudiation of Trump.
Carney embodies the rise of central bankers to all-purpose troubleshooters.
Photographer: David Kawai/BloombergWhen Alan Greenspan was nominated for a fourth term as Federal Reserve head in 2000, Bill Clinton had some fun. The internet boom was in full swing, and the-then US president cracked that he thought about taking “Alan.com” public.
The joke acknowledged the expanding footprint of the Fed in economic and political life. It also nodded to the cult of personality that accrued to the chair — and the new emphasis that monetary agencies were placing on messaging and the ability to shape perceptions about the path of jobs and inflation. The trend has grown in the decades since, as central banks become more powerful, and those who lead them acquire still greater influence. That transformation goes some way to explaining Mark Carney’s elevation to prime minister of Canada.