Rates, markets, cryptos... "We are living in an unprecedented situation".

Between galloping inflation, fears of recession and the situation on the financial markets, the global economy seems to be on the brink of collapse. But is this really the case? We talk to Christophe Barraud, chief economist at Market Securities.

06.10.2022

A lot of comments are alarmist about the economic situation. Are you that pessimistic?

Honestly, we've never had so much uncertainty. Whether in economic, health (in China, editor's note), social, geopolitical, energy or even meteorological terms, the situation is very worrying and above all very unclear. The financial markets are still finding it hard to 'predict' things. We know that there will be a global recession in the developed countries - led by Europe and the United States - from the end of 2022, but we still don't know how deep it will be or how long it may last.

To top it all, we are experiencing an unprecedented situation with a negative wealth shock in many countries: equities and bonds have collapsed in recent months, due in particular to the rise in central bank interest rates. So yes, I am rather "pessimistic".

Do you think that the economic situation could push central banks to return to a more accommodative monetary policy?

Format

Interviews

Topic

Finance

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