Recession follows `debt-driven boom in asset prices`

Today`s recession isn`t like others in recent history, according to Charles Bean, Deputy Governor for Monetary Policy at the Bank of England.

In his speech at the National Farmers` Union Conference, Mr Bean pointed out that the current recession `is rather different from its three large post-war predecessors`.

`On this occasion, the boom was not in the market for goods and services … Rather it was associated with a debt-driven boom in asset prices, including property.`

The bust following the boom, however, `has not been confined to asset markets and has instead infected the real economy of businesses and jobs`.

This Wednesday, Professor David Blanchflower, another member of the Bank`s Monetary Policy Committee, gave a lecture entitled `What should be done about rising unemployment in the UK?` at the University of Stirling.

In this lecture, he outlined a few proposals which he hoped would `be helpful in starting a national debate on what to do about rising unemployment in general, and youth unemployment in particular`.

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