Photo: Dmitry Lebedev / Kommersant
Bank of America Corp. predicts a repetition of the events of 1997-1998, when the world plunged into a severe economic crisis, and Russia defaulted. It is reported Bloomberg.
According to analysts, this indicates similar trends. So, the markets of developing countries are reduced, the share of high-tech companies becoming more expensive and the US economy shows steady growth.
Experts say that hard economic policy in the late XX century led to the strengthening of the dollar in the next three years it rose by 25 percent, while the emerging markets saw a decline.
What was once considered a localized currency crisis with the devaluation of the Thai baht in 1997, soon spread to other emerging markets, and culminated in the 1998 default in Russia, reminds Bloomberg.
In early June about the future of the global financial crisis, warned the world Bank (WB). The organization noted that in the next couple of years, global shocks should not be expected, however, after 2019, the situation can be very alarming.
In addition to trade wars and protectionist policies, the threat to the global economy, world Bank analysts saw the risk of default in emerging economies, the sharp tightening of the monetary policy of the United States, as well as the buildup of debt in the public and private sectors.
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