Would the U.S. ever hire a foreigner to head the Federal Reserve?

Britain has tapped a Canadian — and one of the financial world's brightest lights — to lead the Bank of England. Perhaps the U.S. should recruit from abroad, too

Canadian Mark Carney will cross the pond to become the first foreigner to head the Bank of England.
(Image credit: AP Photo/The Canadian Press, Adrian Wyld)

This week, the British government announced that it had tapped Mark Carney, the governor of the Bank of Canada, to lead the Bank of England, making him the first foreigner to head the institution in its 318-year history. It is the financial world's equivalent of a blockbuster trade in sports, and Carney was instantly compared to Sven Goran Erickson, the Swede who was brought on to manage England's notoriously underperforming soccer squad during the 2002 and 2006 World Cups. Carney's appointment is seen within Britain as a spectacular coup for the government of Prime Minister David Cameron, who may need some serious financial star power to prevent his country from sinking into an unprecedented triple-dip recession. Carney has been praised for his stewardship of Canada's banking system, which — in stark contrast to the U.S., Britain, and much of Europe — survived the financial crisis without a single expensive bailout. Not unlike its soccer team, the British economy has been plagued by "a string of catastrophic performances," and there was "a lack of enthusiasm for any of the homegrown candidates" to lead it out of the wilderness, says Larry Elliott at The Guardian, making the recruitment of a foreigner all the more palatable.

From an American perspective, the equanimity with which the British public has greeted the prospect of a foreigner running the country's central bank is intriguing. One can only imagine how such a move would be greeted by more conspiracy-minded quarters in the U.S. — the first step in the United Nations' dastardly plan to indoctrinate our children! — particularly if it was carried out by a president whose own citizenship has been such a chronic source of controversy.

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Ryu Spaeth

Ryu Spaeth is deputy editor at TheWeek.com. Follow him on Twitter.