Former Bank of England Governor Carney becomes The Economist's newest contributor
The Economist has launched a new series of comment pieces by specialist contributors to predict what the world will look like after coronavirus - with one of its first columnists being former Bank of England Governor, Mark Carney.
Carney has taken part in 'The world after COVID-19', the magazine's comment series, with a piece titled 'Putting values above valuations'. "Value will change in a post-COVID world," he writes in the piece, which will appear in the April 18th edition of the magazine.
“Fundamentally the traditional drivers of value have been shaken, new ones will gain prominence, and there’s a possibility that the gulf between what markets value and what people value will close," writes Carney, who believes that in the post-pandemic world the idea that markets drive value will be challenged.
In the coronavirus crisis, our way of life has been changed drastically, with a simultaneous return to the local as well as a reliance on the global digital community. The trends this will impact, says Carney, include an increasingly fragmented global economy; the taking up of enterprise value by lost cashflows and increased financial support from governments; a change in how companies balance risk and resilience; and less appetite from individuals to take on financial risk from markets, sectors and companies.
"When [this crisis is] over, companies will be judged by ‘what they did during the war’, how they treated their employees, suppliers and customers, by who shared and who hoarded.”
Carney is the second contributor to the series, which invites sector specialists to comment on the world after the pandemic.
In response to COVID-19, The Economist has taken a series of steps to cover the growing crisis and support readers. It has a new 'Home entertainment' section in Arts and Books to tell people about TV series, films, music, games or a novel to help fill their independent time.
It is also planning to provide an overview on a specific topic like climate, economics and statistics, as well as creating 'The Economist Today' on the magazine's homepage for daily stories. Its global correspondents will publish local diaries for in-depth coverage on how the coronavirus crisis is having an impact.