The new financial landscape

"The world has changed since September," said Mervyn King, the governor of the Bank of England, as he unveiled the Bank's Inflation Report in early November. It certainly has: in a word, the latest report looked nothing like its August predecessor. Back then, King and his colleagues - like all central bankers around the world - were fretting about how to deal with the so-called "central bankers' nightmare" of stagflation. Today, we confront an even more nightmarish proposition: the spectre of

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