Caruana outlines path to recovery from global balance sheet recession
BIS general manager says low demand can't explain the global economy's woes
The recession and stagnation of the global economy over the past few years is best explained as a balance sheet recession, which will require monetary, fiscal, and prudential policy to work in concert for economies to heal properly – according to Jaime Caruana, general manager of the Bank for International Settlements.
Speaking last night at the Harvard Kennedy School in Cambridge, Massachusetts, Caruana said the "balance sheet" view of the recent recession was more accurate than the more
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