A new working paper, published on February 26 by the Bank for International Settlements, points to some of the pitfalls facing policy-makers due to large central bank purchases of government bonds, and argues in favour of a co-ordinated framework to tackle crises.

The paper, Benign neglect of the long-term interest rate, by Philip Turner, says government bond purchases by central banks may have averted disaster, but have also caused markets "additional perplexity" on top of uncertainty over