Politicians and central bankers need to radically rethink how they view blockages in the global economic system, if the world is to escape its current “low-growth trap”, said former Bank of England (BoE) governor Mervyn King today (October 19).

Persistent calls for ‘monetary activism’ – or even fiscal stimulus – to address sluggish economic growth are based on fundamentally flawed theory, said King during a Per Jacobsson Lecture address in Washington, DC.

He said if the world wanted to escape