measures taken by the Central Bank, bring the global economic crisis closer. Now the world economy is experiencing the most difficult period in 40 years. This was stated by the former Minister of Finance of the United States Larry Summers, writes The Guardian.
“We have the most serious, uneven and comprehensive challenges that I can remember in 40 years, during which I am watching the situation. And, frankly, it seems to me that the firefighters have not yet left for a call,” he said to Annual meeting at the Institute of International Finance.
According to the ex-Minister of Finance of the United States, the Central Bank underestimates the risks of stably high inflation. He is sure that against the background of the growth of interest rates, the strengthening of the dollar, the shortage of energy and food, geopolitical tension and climate change, “someone must offer something significant and promote it.”
Larry Summers suggests that the regulators will have to raise interest rates even higher to restrain inflation. However, such a step will lead to disorganization of the economy around the world. “If we try to avoid this, we will face stagflation, and we will have to do something more serious later,” he said.