DAVOS, Switzerland
Bank of England Governor Mark Carney warned Friday that market solutions were no longer sufficient guides for public policy.
Speaking at the World Economic Forum in Davos, Carney said: "The marketization of public policy, before the financial crisis of 2008, lost track of the importance of social capital."
Economists like Smith and Hayek, Carney said, emphasized the importance of social capital.
"Before the financial crisis, consumers were placated with easy credit -- we essentially said ‘let them eat credit,’" he said.
But today reinvestment in social capital is critical, Carney insisted.
"What we need," Carney said, "is ‘Steve Jobs’ applied globally," meaning that investment in skills would foster business creativity.
