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Friday Focus: Financial Turmoil – Robert Kaplan

The Munk Debates Podcast

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The Bank of England Stepped Up

Rudyard: The Bank of England stepped up. There's the positive in this story. But at the end of the day, what do we have here? We have a bank that has reaffirmed moral hazard. So they're reducing long-term borrowing costs and cutting short-term interest rates despite their nose being cut off by government policy. That is stimulative but it doesn't lead to a strong economy or stable financial system.

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