Mervyn King warns we must not repeat mistakes of Great Depression

The Return of the Great DepressionMervyn King warns we must not repeat mistakes of Great Depression "The world is at risk of a return to 1930s-style protectionism that would have ruinous consequences for the global economy, the head of the Bank of England warned last night.

Governor Mervyn King said a repeat of the policies that exacerbated the Great Depression would sow the seeds of the next financial crisis and recession.

He said all the main players were ‘pursuing their own self-interest’ and called for ‘a grand bargain’ to prevent a fresh global disaster.

A global currency war has broken out with countries battling to devalue their exchange rates to boost exports and drive economic growth.

The U.S. and China, the world’s two biggest economies, are at loggerheads over Beijing’s refusal to let its currency strengthen. Washington claims it gives China an unfair advantage."

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