A home in Lynch, Kentucky.
Central banks in Europe, the U.S. and the U.K. sprang into action to reassure that they would provide liquidity backstops, to prevent a domino effect and calm the markets.
Roche, who correctly predicted the development of the Asian crisis in 1997 and the 2008 global financial crisis, argued that, alongside their efforts to rein in sky-high inflation, central banks are "trying to do two things at once."
"They're trying to keep liquidity high, so that the problems of deposit withdrawals and other problems relating to mark-to-market of assets in banks do not cause more crises, more threats of systemic risk," he said.
"At the same time, they're trying to tighten monetary policy, so, in a sense, you've got a schizophrenic personality of every central bank, which is doing with the right hand one thing and doing with the left hand the other thing."