Quick Thoughts on Carney's Move to the BOE

The UK surprised many by naming Bank of Canada Governor Mark Carney to replace Meryn King as the head of the Bank of England.    Immediately pundits weighed in.  Some saying this was somewhat hawkish for the UK and sterling initially ticked up.  Others said this was a loss for Canada and the Canadian dollar initially ticked down.   Yet both sides miss the point.  Carney was not chosen for his monetary policy biases.  On the contrary, what speaks the loudest is Carney's regulatory experience.  The Bank of England is in the process of securing the broadest and farthest reaching regulatory authority.  This is Carney's bailiwick.  He is, and will continue to be the head of the International Financial Stability Board. In this context, it may make sense to pick some one with not beholden to domestic interests or influences. ...