Former City regulator Lord Adair Turner says the UK is \u201cstuck in a very deep economic malaise\u201d and \u201cradical policies\u201d are needed to get out of it.<\/p>\n
In an interview with Wake up to Money, the former chairman of the Financial Services Authority (FSA) also warned that without these radical policies, the UK economy could be stuck with low interest rates \u201calmost indefinitely\u201d.<\/p>\n
The Bank has kept the base rate at 0.5 per cent since March 2009.<\/p>\n
Turner told the BBC: \u201cWe don\u2019t have adequate growth. We don\u2019t have adequate inflation to support adequate growth, or to grow our way out of the debt problems.<\/p>\n
\u201cIt may not come to a crisis like 2007\/8 at all. We may simply be stuck in a chronic malaise which never becomes hyper acute in the same way that it did in 2007\/8 but it equally problematic for the global economy.<\/p>\n
\u201cBecause we don\u2019t have adequate growth, we don\u2019t have adequate inflation to support adequate growth, or to grow our way out of the debt problems.<\/p>\n
\u201cIn that environment, the crisis may come more on the political side. It may come more that the reaction of people to the failure of the capitalist system to deliver adequate growth is populist movements and political instability.\u201d<\/p>\n
As a result, he said policymakers need to look beyond the current policies of zero, and negative, interest rates and quantitative easing.<\/p>\n
He added: \u201cAlthough they are better than nothing, and if I had been on the Monetary Policy Committee of the Bank of England, I would have voted for them, I have become convinced that they are simply not working enough and they\u2019re not going to work.<\/p>\n
\u201cI don\u2019t think there are any reasons to believe that we are on a path which is taking us back to what we thought was normality any time in the next two, three or maybe five and even ten years.\u201d<\/p>\n
He also voiced grave concerns over the future fallout of peer to peer lending.<\/p>\n
He said: \u201cThe losses which will emerge from peer to peer lending over the next five to 10 years will make the bankers look like lending geniuses.\u201d<\/p>\n
Lord Turner also said that the possibility of the UK leaving the European Union was already \u201ccausing major destabilisation at a global level\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
Former City regulator Lord Adair Turner says the UK is \u201cstuck in a very deep economic malaise\u201d and \u201cradical policies\u201d are needed to get out of it.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1181"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1181"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1181\/revisions"}],"predecessor-version":[{"id":1182,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1181\/revisions\/1182"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}