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The world is sleepwalking to another financial crisis
The world is sleepwalking towards a fresh economic and financial
crisis that will have devastating consequences for the democratic market
system, according to the former Bank of England governor Mervyn King.
Lord King, who was in charge at Threadneedle Street during the near death of the global banking system and deep economic slump a decade ago, said the resistance to new
thinking meant a repeat of the chaos of the 2008-09 period was looming.
Giving a lecture in Washington at the annual meeting of the IMF, King said there had been no fundamental questioning of the ideas that led to the crisis of a decade ago.
“Another economic and financial crisis would be devastating to the
legitimacy of a democratic market system,” he said. “By sticking to the
new orthodoxy of monetary policy and pretending that we have made the
banking system safe, we are sleepwalking towards that crisis.”
