BIS: debt now bigger problem than inflation

The paper, 'Monetary and prudential policies at a crossroads', by BIS head of research and policy analysis Claudio Borio, says financial liberalisation, globalisation, and more effective inflation control by central banks, mean the main structural risk to the economy is now a more progressive build-up of financial imbalances, rather than sudden inflation-led shocks.

Borio’s paper recommends policymakers respond by ensuring more cautious behaviour during economic upswings, and by improving the mea