They’re starting to panic as Top World Bank economist says coronavirus pandemic morphing into ‘major economic crisis’

‘This is a war,’ said Carmen Reinhart

By Brie StimsonFOXBusiness

The Wall Street Journal global economics editor Jon Hilsenrath on the coronavirus pandemic’s impact on the economy.

The top economist at the World Bank said in an interview on Thursday that the coronavirus pandemic is “morphing into a major economic crisis” and questioned the wisdom of central banks increasing their sway over the bond market.

“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.”

She said the “longer the uncertainty, the longer the pandemic works its way through the global economy, the bigger the balance sheet damage.”

“This is a war,” she said about central banks trying to keep yields low by buying bonds. “During wars governments finance their war expenditures however they can and right now there are dire needs.”…….More Here

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