Monetary Policymakers Tooth-less To Fight Next Crisis, warns BIS

Monetary Policymakers have run out of room to fight the next crisis with interest rates unable to go lower, the BIS warns…And the continued mis-allocation of resources during busts prompted by central banks’ rock-bottom interest rates has also hammered productivity growth, the BIS said, as a prolonged reliance on debt had been used in its place. This problem is compounded as the world’s populations continue to age, the organisation warned, making debt burdens harder to bear. Yet politicians have relied too much on temporary growth boosts by using debt, rather than making painful choices, said the BIS.

http://www.telegraph.co.uk/finance/economics/11704051/The-world-is-defenseless-against-the-next-financial-crisis-warns-BIS.html