There has been no shortage of policy mistakes by both individuals and institutions over the past couple of years — some publicly acknowledged, many more denied, at least in public — but there is a wider and more important aspect of the present crisis that has received less attention.
Very many of the beliefs that were accepted as constituting the framework for central bank and financial regulatory best practice a decade ago have been found to be unsound. They contributed to the present disaster and need radical overhaul.
There is a need for a profound revision of much of the intellectual framework that has shaped our actions over the past ten or fifteen years.
Nowhere is this clearer than in the UK, for the reason