Financial Crisis May Repeat, Think Tank Warns

Sponsored Links

Global policymakers have failed to address problems at the root of the economic crisis and unless urgent action is taken, there is a real danger that it may not be the last crisis of its type, the Institute for Public Policy Research or IPPR warned Tuesday.

In its latest report titled 'How to Make Capitalism Better', the London-based institute said the rapid return to bonus culture in the UK financial sector shows that real reform has been very limited.

"Unless policymakers take action to create the blueprint for a more stable and sustainable model of capitalism, and one that delivers better outcomes for all not just a small elite, there is a real danger of another economic crisis in the future," IPPR Senior Economist Tony Dolphin said.

In the report, the independent think tank urged policymakers to show greater international coordination of economic policies in the major economies in order to avoid further crises.

It recommended that major emerging economies like China and India should be given a greater role in bodies such as the International Monetary Fund.

Moreover, the IPPR said there is a need for increased regulation of the financial system based on internationally agreed principles.

Dolphin said the UK public's obsession with consumerism, particularly debt-driven spending, must be tackled.

Global policymakers have failed to address problems at the root of the economic crisis and unless urgent action is taken, there is a real danger that it may not be the last crisis of its type, the Institute for Public Policy Research or IPPR warned Tuesday. (Market News Provided by RTTNews)