The latest contribution from the central bankers’ think-tank, the Bank for International Settlements’ (BIS) Annual Report 2012, is to be welcomed on several grounds. It is couched in clear language and does not mince words. And it provides a heavyweight answer to the siren voices promising that the way out of the prolonged economic slowdown (with a return to recession in many areas) is for governments to ‘end austerity now’.
However, the report also suffers from weaknesses. Its recommendations a