Will the recent banking chaos lead to an economic crash?
So far, people seem remarkably blasé
How quickly things change. Not long ago analysts thought the global economy was powering ahead; now they worry about a deep recession caused by fallout from the banking turmoil. “From no landing to hard landing”, as Torsten Slok of Apollo Global Management, an asset manager, has written. Analysts at JPMorgan Chase—better at economics than metaphors, one hopes—say that “a soft landing now looks unlikely, with the airplane in a tailspin (lack of market confidence) and engines about to turn off (bank lending)”.
This article appeared in the Finance & economics section of the print edition under the headline “Clinging on”
Finance & economics April 1st 2023
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- European banks and the price of safety
- Did social media cause the banking panic?
- Western lenders may regret forcing Ukraine to turn to the IMF
- How rare-gas supply adapted to Russia’s war
- Which countries have escaped the middle-income trap?
- China is now an unlikely safe haven
From the April 1st 2023 edition
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