(CEP News) - Reflecting on the current economic turmoil, Bank of England Deputy Governor John Gieve said policy-makers need to act pre-emptively in the future to avoid similar crises and that markets can’t always be assumed to be right.

There is a need for policy-makers to “be willing to back their judgments - whether in identifying asset bubbles or identifying firms or markets which threaten financial stability - and to take preemptive action,” Gieve said while speaking at the London School of Economics.

“Looking back, we, the Fed, the ECB, and banks in advanced countries in general did not lean hard enough against rising asset prices,” he added later while speaking with reporters.

“I am well aware that we are not at the end of the story,” he said, adding that it is still unknown how deep and prolonged the recession will be or when financial markets will completely recover.

By Stephen Huebl, shuebl@economicnews.ca, edited by Sarah Sussman, ssussman@economicnews.ca

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Posted in Categories: Economy, Eurozone, Releases, UK.

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