The pandemic is turning into an economic crisis, the World Bank economist said


The new coronavirus pandemic is turning into a severe economic crisis, said World Bank (WB) Chief Economist Carmen Reinhart. She also warned of the possibility of a financial crisis.

“This didn’t start as a financial crisis, but it turns into a deep economic crisis with very serious financial consequences,” Reinhart told Bloomberg Television. “We have a long way to go.”

Reinhart, who became the SB’s chief economist in June, is best known for her book on the latest financial crisis, This Time Is Different: Eight Centuries of Financial Folly, which she wrote with Harvard colleague Kenneth Rogoff at the time. .

Asked if buying central bank bonds to keep yields low was a zero-sum game, as everyone does, Reinhart said:

“This is a war. Governments finance war spending as much as they can during wars, and they have huge needs right now. ”She added that this scenario is unsustainable.


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