Bank for International Settlements is one of the world’s most highly regarded economic institutions.
Telegraph.co.uk
The global economy may be heading for a far deeper crisis than is expected and a bout of deflation in the world’s biggest economies is now a possibility, according to one of the world’s most highly regarded economic institutions. The Bank for International Settlements has warned that many in the City and elsewhere may have underestimated the scale of the coming economic downturn in one of its most sombre portraits yet of the international financial system. The Swiss institution - known as the central bankers’ bank - issued the alert in its annual report, released today. The report draws stark comparisons between the current crisis and a variety of others including the Great Depression. Most sobering is the report’s warning that developed economies including the US and Britain could face deflation. More