Monetary policy cannot cure the ills that caused the effects of the recent financial crisis to reverberate throughout the economy, David Miles, a member of the Bank of England's Monetary Policy Committee, said on Tuesday.

The crisis bit especially hard because of the combination of soaring asset prices and high levels of debt, Miles said, in a speech delivered in Dublin. This situation was in contrast to the bursting of the dotcom bubble, where the fallout was contained within equity markets.