Andrew Haldane begins by emphasising that the financial system has been significantly more stable over the past six months, but some of the root causes of the crisis remain. One of those is an accumulation of debt. He says that to different degrees a debt hangover is affecting households, financial and non-financial companies and sovereign states around the world, but is perhaps greatest in the financial system. He notes that to date the servicing costs of these debts have been cushioned by policymakers' actions, but public sector support can only ever offer temporary relief - they are not a long-run cure.
Published on
27 January 2010
Press release