From Mises’ Human Action:
The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market rate of interest by means of credit expansion. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
A paradigm shift in economics is necessary, in the sense meant by Thomas Kuhn, if we are to get out of this sustainably.
Tags: Bank of England, economics, Money, Quantitative Easing