Page last updated at 13:59 GMT, Friday, 12 December 2008

Calculating LIBOR

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Until last August, few people had ever heard of LIBOR - or London Interbank Offered Rate. But it was a sudden jump in LIBOR in August 2007 that heralded the start of the credit crunch.

But what is LIBOR, who calculates it, and should we trust it? More or Less presenter, Tim Harford went to Canary Wharf to find out how LIBOR is calculated.

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The full edition of More or Less from which this extract is taken was first broadcast on BBC Radio 4, on Friday, 12 December 2008 at 1330GMT

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