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Bank of England Governor Mark Carney has admitted his innovation of adopting forward guidance might need to be shelved.
Bank of England Governor Mark Carney has admitted his innovation of adopting forward guidance might need to be shelved.
(POOL/REUTERS)

In hindsight, maybe forward guidance wasn’t such a great idea

Justin Bieber isn’t the only Canadian suffering embarrassment abroad this week. Mark Carney has grabbed attention at the World Economic Forum in Davos for admitting that the Bank of England’s forward guidance system might need to be shelved. It was a project that Mr. Carney spearheaded in his first meeting after taking over the helm on Threadneedle Street; confessing its failure just six months later is not just embarrassing, it’s dangerous.