Mervyn King: On economic threats, eurozone and the banking system.

Posted On: 
6th March 2016

Former Bank of England governor, Mervyn King, told the Andrew Marr show world leaders failed to target the fundamental causes of the financial crisis in 2008, opting instead for short-term solutions.

“I think that in the wake of the last crisis, and it was only the last of a many long series of crises, that governments and central banks did boost employment and increase spending and in the short-run that prevented the rise in unemployment that we saw in the great depression. So we avoided a great depression but since we didn’t put right the fundamental problems living standards have continued to grow very slowly; we are seeing an extremely slow recovery across the whole world and anger has built up because the people who are suffering weren’t those who felt responsible for the crisis.

"It was sensible to cut interest rates and to increase government spending in 2008/09. But that’s a temporar...