Sir Mervyn King: debt crisis is causing a dangerous 'dependence on central banks'
December 22 — Sir Mervyn King has used his position as vice-chairman of Europe's "early warning watchdog" to warn that the developing debt crisis is causing a dangerous "dependence on central banks".
Just a day after the European Central Bank (ECB) provided a record €489bn (£407bn) of cheap loans to banks, the Governor of the Bank of England said the crisis had been made worse by “negative interlinkages”. He added: “Dependence on central banks has risen and signs are intensifying that stressed financial conditions are passing through to the real economy.” Sir Mervyn was speaking in Berlin following a meeting of the European System Risk Board. Read More.
