In reality, the financial crisis is already here
The risk of another global financial crisis is a frequent topic of discussion. But in reality, the crisis is already here: Sharp depreciation of emerging currencies since the beginning of 2018; Falling share prices, particularly in China and among European banks, but also globally. These financial shocks, which can be labelled a financial crisis, will slow growth in emerging countries, China and Europe. They can be attributed to a rise in risk aversion caused by: Major difficulties in some emerging countries (Turkey, Argentina); Protectionist policies, which are having the effect of creating a high degree of uncertainty in China in particular ; Uncertainty over global growth; The Italian crisis, which is spreading to all European banks.