The Scouse lad was outstanding for their 3-3 draw against Everton.
Carra said: "It was great for me to see two local lads on opposite sides who were the two outstanding outfield players on the pitch.
"I thought the best player on the pitch was Simon Mignolet, but in terms of outfield players it was Flanagan and [Ross] Barkley. For me, they were the two stand-out players in the teams.
"Flanagan came in at left-back. I've played there and it's not easy playing on your opposite side. Flanagan proved himself under Kenny Dalglish.
"We talk about young English players getting a chance, well Flanagan gets a chance and is one of the best players in the derby match.
"Now he has the confidence of Brendan Rodgers, I think we'll see a lot more of him."
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