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Expert: Important tools, such as discount rate of leader central banks, become ineffective

12.03.2020,16:49


March 12, Fineko/abc.az. Donald Trump's statement about closure of US’ border crossings for entry and exit to Europe caused the prices on the oil market to fall below $34.

This is an extremely uncertain and difficult period that cannot be predicted.

ABC.AZ reports that this was informed by expert economist Rovshan Agayev on his account in the social network.

He noted that after Saudi Arabia, the UAE, Iran and Kuwait joined the price war - trading partners offer discounts on oil.

According to Agayev, if it were not for the high risk of global economic crisis caused by the virus, we could say with optimism that this war on the oil market will stabilize in the short term: "But as the world economy closes, the flows of goods, tourists, and capital are limited, it seems real that the global economy will enter dangerous recession after 2008. What makes the current situation more dangerous is that the scale of global debt has grown by $100 trillion since 2008. In addition, such very important instruments as the issue of money and the discount rate of leading central banks have become extremely inefficient."