Author: David Simpson
Publication date:July 2009
The author contends that the recession was neither unforeseeable nor inexplicable due to the credit-boom which was caused by governments keeping interest rates too low, a failure in regulation and governments encouraging borrowing by those least able to afford it. The author argues against the fiscal stimulus and supports an orderly liquidation of insolvent banks. In addition, the report criticises quantitative easing as it poses an inflationary threat.