Loading ...World Is Defenseless Against Next Financial Crisis, BIS Warns
By Peter Spence
The Telegraph, London
Sunday, June 28, 2015
http://www.telegraph.co.uk/finance/economics/11704051/The-world-is-defen…
The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned.
The so-called central bank of central banks launched a scatching critique of global monetary policy in its annual report:
http://www.bis.org/publ/arpdf/ar2015e.htm
The BIS claimed that central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies.
These low interest rates have in turn fuelled economic booms, encouraging excessive risk taking. Booms have then turned to busts, which policymakers have responded to with even lower rates.