Will the global economy slip into another "Great Depression"? mp.weixin.qq.com/s/WYPSFnGxjMhD…
Considering the recent tumult in global economic and financial markets triggered by the pandemic, there exist quite a few pessimistic expectations that the #GreatDepression 2.0 is looming.
The panic over a possible return of the Great Depression is misleading in view of the vast discrepancies between the present and the Great Depression in terms of monetary system, principles on #macropolicies, #global trade, robustness of banking system and #socialsecuritysystem.
The gold standard system during the Great Depression hampered efforts to loose monetary policy. The room to maneuver for policies is much more spacious at present than during the Great Depression.
The stimulus policies lagged seriously behind during the Great Depression.
Although the global trading pattern is undergoing drastic changes and the economic and trade frictions between China and the United States have been repeated several times, the severity of the global trade war during the Great Depression is still not comparable.
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