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A higher degree of paranoia and risk aversion should form a crucial part of central banks' post-crisis toolkits, Daniel Gros, the director of the Centre of European Policy Studies, said on Tuesday.
Speaking at the inaugural CentralBanking.com web seminar, Gros said: "The key element [of preventing future crises], ultimately, is paranoia. You need to have an institution that dislikes risk and sees it everywhere, even during a boom."
Gros added: "We need an