Oct. 5 (Bloomberg) -- European Central Bank Governing Council member Erkki Liikanen said policy makers should learn from past experience and focus on systemic risk.
“This big financial crisis follows the same sequence of events” as previous crises, including high leverage, bursting bubbles, a financial crisis, recession and sovereign debt crises, Liikanen said at a conference in Kiel, Germany, today. “It is extremely important that we never neglect history the way we did a few years ago.”
“If the financial sector grows out of proportion it’s always associated with risks,” Liikanen added.
To contact the reporter on this story: Niklas Magnusson in Kiel, Germany, at firstname.lastname@example.org
To contact the editor responsible for this story: Christian Vits at email@example.com