Economic downturn 'bad as 1970s'
The economic downturn is as bad as the 1970s and could "drag on for some considerable time", one of Britain's most senior economists said.
Charles Bean, the Bank of England's new deputy governor, said that every time the financial markets began to look better "another grenade" exploded.
But, according to the BBC, he believes there is some light at the end of the tunnel and if oil prices and credit markets can be stabilised, growth should pick up and inflation fall next year.
The deputy governor was speaking at the annual conference of the world's top central bankers in Jackson Hole, Wyoming, in the United States.
Mr Bean said: "We've got our fingers crossed that things will improve. But there is the recognition that there is still a long way to go yet
"It looks like it will drag on for some considerable time yet.
"This is just a transitory period of subdued growth and we will get through the other side and the growth will resume to more normal levels."
He described the mood at the conference as one of "considerable caution for the next year".
Bank of England governor Mervyn King has already warned that the UK economy is in for a difficult and painful period due to a combination of high inflation and rapidly slowing growth.
