Friday, July 18, 2008
No Quick Fix
FIVE years ago Mervyn King, the newly appointed governor of the Bank of England, gave warning that the “nice” decade would be followed by something less wholesome. Now starting his second term of office this month, Britain’s leading central banker looks more prescient than ever. But even he surely did not expect that the “non-inflationary consistently expansionary” era would turn quite this sour.