Former Finance Minister Zadornov explained five reasons for the impending global crisis
MOSCOW, April 9 – RIA Novosti. Former Russian Finance Minister Mikhail Zadornov said in an interview with RIA Novosti that a long period of free money and with it pumped economies, a pandemic, trade wars and geopolitical intensification have become the main causes of the impending global crisis.
He said earlier on Sunday that the world economy is in crisis for the first time since 2008, and huge imbalances have accumulated during this period.
Expert: The world economy is in crisis for the first time in 15 years
“First, there was an unprecedented period of zero interest in both the US and Europe, meaning money had no value for more than 10 years. So there was the illusion that you could borrow at 1-2%, for example, under venture projects and We expect your ideas to pay off in 10 years,” Zadornov commented on the question of the reasons for the accumulation of imbalances.
The second reason was the monetary expansion programs carried out by the ECB and the US Federal Reserve, which pumped free money into the economy. Zadornov cited the epidemic as the third reason why the authorities of many countries stimulated demand by paying people and businesses.
Finally, Western sanctions against Russia, which led to a change in supply chains and an imbalance in the energy market, are the fifth “hit” of the impending global crisis.
Scholz said that the conflict in Ukraine was not the root cause of the crisis in the economy.
Source: Ria
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