“This did not start as a financial crisis but it is morphing into a major economic crisis, with very serious financial consequences,” World Bank Chief Economist Carmen Reinhart told Bloomberg. “There’s a long road ahead.”
Asked whether central banks buying bonds to keep yields low is ultimately a zero-sum game when everyone’s doing it, Reinhart said, “This is a war. During wars, governments finance their war expenditures however they can, and right now there are dire needs.” “The scenario we are in is not a sustainable one,” she added.
Read the full interview on Bloomberg.
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