LSE professor: Potential for another grave shock to economy

Charles Goodhart, London School of Economics professor and former member of the Bank of England's monetary policy committee, tells MPs to make contingency plans in case of a second downturn linked to the eurozone crisis:

"In 2008 the fiscal positions of most governments was considerably stronger than they are now, and interest rates as of the beginning of October 2008 were considerably higher than they are now.

"You have got the potential for another grave shock with less in the way of government instruments to offset it and protect communities against it."