Mark Carney, the former head of the Bank of England and the Canadian Bank, has repeatedly admitted that his view of the economy, finances and society were formed not only in the walls of universities and central banks, but also behind the pages of books. In numerous interviews and official speeches, he shared works that had the greatest influence on his beliefs and the approach to managing economic processes. From classical philosophical works to modern bestsellers - all this unites the interest of the guest and researcher in one person.
In this review, we will consider the key books mentioned by Mark Carney in an interview with Bloomberg, Financial Times, on the forum in Davos and performances at the London School of Economics. We carefully structure the material to give a complete idea of how each work was woven into the fabric of his thinking and inspired the adoption of strategic decisions to critical moments for the global economy.
Each section of the article is accompanied by excerpts from performances and quotes, where Karni talks about how literature expands horizons, helps to identify risks and see new opportunities. We plunge into the world of ideas that formed one of the most influential economists of our time.
From a young age, Mark Carney was drawn to philosophical texts, trying to comprehend the nature of power, law and social justice. In an interview with Alberta University, he mentioned that the work of Plato and Aristotle laid the foundation for his ideas about the state administration and balance of interests. The “state” of Plato is especially close to him, where the issues of the social justice and the attitude of the individual to the common good are brightly reflected.
In addition to ancient authors, Karni appreciates the works of Thomas Hobbes and John Locke. The “Leviathan” of Hobbes, according to him, emphasizes the importance of a strong state to maintain order, and “two treatises on the rule” Locke helps to understand the nature of the rights and obligations of citizens. These ideas subsequently influenced his views on the regulation of financial markets and their social functions.
No less significant for him was the “criticism of pure mind” Immanuel Kant, which discovered the boundaries of human knowledge and the role of rational thinking. Carni notes that Kantian poetics of reasoning developed the ability to objectively evaluate the data in it and avoid bias in the analysis of complex economic phenomena.
Thus, classical philosophy has laid a strong foundation for further research of cornies in the field of global economy and sustainable development, and also formed its desire for ethical aspects of financial activity.
A serious impulse for the formation of Karni as an economist was the work of Friedrich von Hayek and Milton Friedman. In an interview with Financial Times, he admitted that Hayek’s “road to slavery” convinced him of the value of the free market, but at the same time made him think about the risks of excessive centralization of power. At the same time, Friedman's “capitalism and freedom” forgot an understanding of the relationship between economic freedoms and civil rights.
The “great turning point” of Karl Polanya played an equally important role, revealing the contradictions of classical liberalism and showing how economic liberalization can turn into social shocks. Carni quoted this work in a number of public lectures, emphasizing that market regulation should take into account not only efficiency, but also social justice.
Modern economic research did not pass by his attention. He praised the “capital in the 21st century” of Thomas Picketty, where the emphasis is on inequality and its long -term consequences. Carni drew the attention of the audience that understanding the dynamics of the distribution of wealth is important for the development of stable fiscal and monetary politicians.
Kennet Rogoff and Carmen Rainhart, which explores the cycles of financial crises, was an important source of analytics. Carni mentioned that these studies helped him recognize the signs of impending systemic risks and build preventive measures in central banks.
Understanding human behavior and cognitive distortion is a key block of reading Mark Carney. In one of his speeches at the London School of Economics, he talked about the importance of “Think slowly ... decide quickly” Daniel Caneman as a table book for economists. This work, according to him, teaches to combine intuition and an analytical approach when assessing risks.
The similar inspiration of Karni drew Richard Thaler from the “poverty of human capabilities”, where examples of irrational behavior in financial markets were demonstrated. Carni gave these examples to show colleagues how much the linking of the economy and psychology helps to make more balanced decisions.
Another important source was “Influence: The Psychology of Persuasion” Robert Chaldini. Carni noted that understanding of the mechanisms of conviction and influence helps him build a communication strategy with colleagues, the media and the general public during economic turbulence.
Together, these books formed a deep idea of how emotions and social factors affect the behavior of investors, consumers and legislators, and allowed him to build a policy of the Central Bank, taking into account the human factor.
Carni has repeatedly referred to the classic study “Manias, Panics, and Crashes” Charles Kindleberger. According to him, the book reveals the main patterns of the occurrence of bubbles and system collapses, and most importantly, how the central banks can and should respond to the growing escalation of risks.
Another fundamental work for him was the “crises of the European currency” of the field of de sin and the “debt trap” David Stockman. Both authors describe historical precedents and give valuable lessons for modern politicians seeking to avoid debt traps generated by excessive borrowing.
These books served as a kind of “lighthouses” for Carni when making decisions on interest rates and quantitative softening programs. He emphasized more than once that it is impossible to repeat other people's mistakes and it is important to study on the experience of the past in order to timely adjust the strategy of monetary regulation.
In recent years, the interest of Mark Karni has focused on the calls of digitalization and climate change. He highly appreciates The Age of Surveillance Capitalism, Shoshany Zuboff, where the author describes in detail the mechanisms of collecting and using personal data. Carni warns that uncontrolled digitalization can undermine confidence in financial institutions.
Another relevant work is “Sapiens. Brief history of mankind ”by Juval Noval Harari. Carni cites Harari's ideas that humanity is experiencing unprecedented changes, expressed in the acceleration of technology and globalization. He uses these theses in his reports when he discusses the future of the world economy.
Finally, Diana Freeland and the “green effect” of Richard Blandford became his desktop guides in the field of environmentally responsible investment. Carni is actively promoting the theme of the “black swan” of climatic risk and recommends politicians to integrate stability into an economic strategy.
Summing up, we can say that the book regiment of Mark Karni is a combination of classical philosophy, fundamental economic research and modern bestseller who study the mental nature of man and challenges of the digital era. In each work, he is looking for not just theoretical calculations, but practical recipes, proven by history and supported by data. It is such a multifaceted reading that allows him to see the relationship between economics, politics, society and technologies.
Following the example of Karni, it is worth not limited to narrow professional literature, but pay attention to ideas from different fields of knowledge. Then a holistic worldview is formed that can foresee risks and notice the possibilities in conditions of rapid changes. Let everyone find his own book on the shelf, which will open the endless horizons of thought and become a guide to a more balanced and fair future.
