World financial system now more dangerous than in 2008, senior OECD economist warns at Davos

A snipper holds his position on the roof of a hotel during the World Economic Forum (WEF) annual meeting in the Swiss Alps resort of Davos, Switzerland January 22, 2018 REUTERS/Denis Balibouse

Ambrose Evans-Pritchard
© Telegraph Media Group Limited

The world financial system is as dangerously stretched today as it was at the peak of the last bubble but this time the authorities are caught in a ‘policy trap’ with few defences left, a veteran central banker has warned.

Nine years of emergency money has had a string of perverse effects and lured emerging markets into debt dependency, without addressing the structural causes of the global disorder.