Is there a Global Economic Crisis Coming?

Novinite Insider » OPINIONS | August 18, 2019, Sunday // 10:47
Bulgaria: Is there a Global Economic Crisis Coming?

"There is no doubt that a new economic crisis is coming. It always comes and it usually takes about 10 years. We need to be clearly aware that we live in a time where there are always highs and lows in economic life, ”Petar Ganev of the Institute for Market Economics told NOVA.

"The downturns are not always a crisis, but we turn them into a crisis, because of our financial policy. We have so many instruments that we always pump growth, mainly through central banks, but not only through them. If someone stumbles - we will help him, we will pump more money. As we cover these small ailments of the economy, balloons inflate, which at some point of time erupt. Ie we ourselves provoke, during some period, a more severe crisis, ”he said.

According to him, there are already many indicators that indicate that a new economic crisis is coming.

"The economic cycle alternates between boom and bust. This is normal. We should not be scared, but we should not just look away, ”says Atanas Pekanov of the Austrian Institute for Economic Research.

In his words, we should think about the measures and lessons we have learned from the recent economic crisis. "We are at a crossroads right now. The world economy is a bit like Charles Dickens' book Tale of Two Cities - we don't know where it will go. Market participants are uncertain, ”said Pekanov.

"That's why what we learned from the last crisis is important. We learned that fiscal restrictions were not particularly productive. Many countries have deepened the recession. The other lesson is that in times of boom we should not allow losses to be shared by the entire society, while at the same time earning the highest income groups, ”Atanas Pekanov believes.

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