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Tett: Echoes of 2008 as danger signs are ignored

Ten years ago when the world’s central bankers gathered in Jackson Hole

Some central bank officials — such as William White, chief economist at the Bank for International Settlements, or his colleague Claudio Borio — were deeply worried about what was happening down in the weeds of global finance. 

In particular they feared excesses were building with newfangled instruments that many traded but few truly understood, such as credit default swaps. 

However, those Cassandras were a minority; most central bankers were so obsessed with seemingly benign “real” economy issues such as inflation, unemployment or growth rates.

Gillian Tett, FT 1 September 2016

This is the argument of a fascinating new paper from William White, 

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