BIS central bankers’ speeches  the past three decades is extraordinary, and it has helped to lift billions of people around the world out of poverty. However, the Chinese economy’s post-crisis performance has been bolstered by a large build-up of debt, which has more than doubled to reach almost 200% of GDP. As had been the case in the advanced world, the Chinese debt boom owed much to an explosion of shadow banking, which relates to the second lie of finance. Lie II: “Markets always clear” Beneath the new era thinking of the Great Moderation lay a deep-seated faith in the wisdom of markets. Policymakers were captured by the myth that finance can regulate and correct itself spontaneously. They retreated too much from the regulatory and supervisory roles necessary to ensure stability. 3 That “markets always clear” is the second lie, one which gave rise to the complex financial web that inflated the debt bubble. In markets for goods, capital, and labour, evidence of disequilibria abounds. In goods markets, there is ‘sluggishness everywhere’. Left to themselves, economies can go for sustained periods operating above or below potential, resulting, ultimately, in excessive or deficient inflation. Yet efficient market forces ‘should’ bring about changes in prices sufficient to equate demand with potential, leaving inflation as a purely monetary phenomenon. In labour markets, there is ‘rigidity everywhere’. Rather than fluidly adjusting to equate the demand for labour with its supply, periods of deficient labour demand can persist, sustaining mass unemployment and joblessness.
Writing to Morcom’s mother, he declared, “I know I must put as much energy if not as much interest into my work as if he were alive, because that is what he would like me to do.”  3  All speeches are available online at www.bankofengland.co.uk/news/speeches  3  To many, Turing is renowned for his “indispensable”3 codebreaking contributions at Bletchley Park during the Second World War.4 The advances Turing made in cryptanalysis then – including co-inventing the Bombe computer for solving ciphers and applying statistical techniques to speed up rates of decryption – were pivotal in cracking the hitherto unbreakable German Enigma code. Turing’s work gave the Allies a crucial advantage in the battle for the Atlantic and is widely credited with hastening the end of the war by at least two years, potentially saving millions of lives in the process. That alone would be more than enough for one lifetime, but Turing’s contributions range far more broadly than those that have been rightly celebrated in print and on screen. One of Turing’s lesser-known interests was biology. In later life, Turing pioneered morphogenesis by applying his knowledge of mathematics and computer science to understand how plants and microorganisms develop their shapes and patterns. Turing used computers to simulate the results of hypothetical chemical reactions to develop truly original insights in this field.