Central Bankers in the Minsky Moment: How Different Central Banks Have Responded to the Threat of Debt-Deflation

The differing responses of the Federal Reserve, Bank of England, and European Central Bank to the credit crunch of 2007-2008 reflects the differing lessons each has drawn from history. Ben Bernanke of the Federal Reserve and Mervyn King of the Bank of England each studied the debt deflation of the 1930s, stressing different aspects of the process, while the ECB is more influenced by the German hyperinflation of the early 1920s.