The global economy could face a “relapse” of the crisis that rocked the world a decade ago and more importantly, there would not be enough “medicine” available to treat the problem this time, the Bank f International Settlements (BIS) warned in its annual report on Sunday.
Key quotes by BIS Chief Economist Claudio Borio (Source: Asia Times)
The recovery after the 2007-2008 global financial crisis had been “highly unbalanced,” with emerging economies especially under pressure.
The unconventional policies implemented by central banks had helped boost economic activity, “but some side effects were inevitable.”
The ongoing crisis in Turkey and Argentine are “withdrawal symptoms” resulting from the central banks lowering the dosage.
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