- Nouriel Roubini foresees a global financial crisis.
- Different policies implemented to prevent a financial downturn will not help.
- Central banks around the world must stop printing money.
Dr. Nouriel Roubini, a professor at New York University’s Stern School of Business, estimates that a new recession could hit the global economy very soon. And, when that happens, central banks around the world must stop printing money.
A Global Recession is Underway
On his latest market review, the head of Roubini Macro Associates, sometimes known as “Dr. Doom,” stated that the global economy is experiencing an overall slowdown that could bring on an outright recession. This could be triggered by several issues that are occurring around the world.
The trade war between the U.S. and China, the rising tensions in Iran, the idea of a “hard Brexit” in the United Kingdom, or a conflict between the International Monetary Fund (IMF) and Argentina’s new president could set the stage for a macro-economical downturn. The solution would not be printing more money, according to Roubini:
When the next recession hits, policymakers will almost certainly pursue some form of central-bank-financed stimulus, regardless of whether the situation calls for it.
Roubini argues that under “intense political pressure,” governments around the world tend to use the same tactics to prevent a “full-scale depression” and the “onset of deflation.”
Printing Money Will Not Solve the Issues
In the U.S., the Federal Reserve is cutting rates and implementing a new form of quantitative easing (QE). In the U.K., the Labour Party came up with a “People’s QE,” making the central bank print money to finance direct fiscal transfers to households.