Rising interest rates could cause economy to 'unravel', Ken Rogoff warns

According to the BBC, Rogoff, who was IMF chief economist from 2001 to 2003 and is now a Harvard professor of public policy and economics, warned people had got used to a world of ultra-low interest rates. He had previously thought that China posed the biggest threat to the world economy but now believes interest rates are a greater concern due to the increased levels of debt globally. Rates have been kept at historic lows in many developed economies since the financial crisis, with the UK interest rate held at 0.25% since last August. Speaking to the BBC World at One, Rogoff said:...