The quote from the Governor is taken from Carney, M. (2013), “The UK at the heart of a renewed globalisation”, speech at an event to celebrate the 125 th anniversary of the Financial Times, available at https://www.bankofengland.co.uk/-/media/boe/files/speech/2013/the-uk-at-the-heart-of-a-renewedglobalisation.pdf. 16 The three liquidity insurance facilities are: (I) Indexed Long Term Repo– for predictable/regular need for term collateral transformation; (II) Discount Window Facility – for firm-specific liquidity shock requiring liquidity in bespoke size and timing, with lagged disclosure; and (III) Contingent Term Repo Facility – for actual or prospective market-wide stress meaning SMF participants need cheap, plentiful cash at term. More information on the Bank’s facilities can be found in the ‘Red Book’ https://www.bankofengland.co.uk//media/boe/files/markets/sterling-monetary-framework/red-book . 6  All speeches are available online at www.bankofengland.co.uk/speeches  6  Prior to 2006, the Bank had just 17 members of its Sterling Monetary Framework. But liquidity needs are not just for the biggest banks & building societies. In recognition of this, we had already increased the number of members to 106 by 2012; today it stands at 207. 17  The crisis also revealed that liquidity shortages can materialise far beyond the banking system; and the financial system has continued to evolve since then. And so in 2014 we widened access to our facilities to include central counterparties and broker-dealers as well as banks and building societies.

The G20 has agreed a wide range of regulatory standards and put in place the mechanisms for deep supervisory cooperation. These Financial Stability Board (FSB) reforms create a platform for cross border financial services between different legal systems and regulatory approaches that achieve similar outcomes for financial stability. This avoids unnecessary  25  See Carney, M (2016), ‘The Spectre of Monetarism’. Rodrik, D. (2011). The globalization paradox: Democracy and the future of the world economy. 27 See Carney, M (2017), ‘A Fine Balance’. 28 Sales are increasingly taking place on-line and over platforms, rather than on the high street. Intangible capital is now more important than physical capital. A hyper-connected, capital-light world, could offers a future that increasingly belongs to small and medium-sized firms, with platforms (such as taskrabbit, Amazon, Etsy, Shopify, and SamaHub) giving them direct stakes in local and global markets. 26  16  All speeches are available online at www.bankofengland.co.uk/speeches  16  duplication and costly fragmentation while promoting greater competition, enhanced resilience and improved efficiency to the benefit of all our citizens. Conclusion: Is this How the Expansion Ends? Although the economic and financial imbalances in the global economy do not yet appear to contain the seeds of their own demise, global momentum is softening. Monetary policymakers may need to be disciplined and macroprudential authorities, vigilant. Risks from China and from de-globalisation are significant and growing. Could they be how the expansion ends? Protectionism appears already to be having an impact.