John Greenwood, chief economist of Invesco plc and a member of the Shadow Monetary Policy Committee, said that although in the past central banks had been able to make adjustments by cutting interest rates and creating new purchasing power, the current crisis was different from any previously experienced.
Mr Greenwood explained that most of the growth in recent years had come not from traditional banking, but from non-banking sectors – the capital markets – such as hedge funds, private equity, Structured Investment Vehicles, Collateralised Debt Obligations, and derivatives.
