Avoiding another financial crisis

3rd April 2012

When then chancellor Gordon Brown promised shortly after moving into number 11 in 1997 to "abolish boom and bust", it sounded a great idea, ending millennia of economic ups and downs, and heralding a new age of financial stability.

Some 10 years later, it all went wrong. And two academics argue it could all happen again unless finance professionals have "skin in the game" – they have to pay when things go wrong if they want bonuses for getting it right.

Although Brown later claimed he has said "Tory boom and bust", his exact words were: "For 40 years our economy has an unenviable history, under governments of both parties, of boom and bust.

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