Baku. 15 May. REPORT.AZ/ "The world has reached a crossroads. One road leads to rapid economic development, the other way to stagnation, instability and chaos”.
Report informs citing the Vesti, economic adviser to former US President Barack Obama, famous businessman and the author of several books, economic adviser to "Allianz" and a number of large companies Mohammed al-Erian stated.
El-Erian said the economic crisis could start in next 2 years: "Today, we are on a pause. Gradually, financial markets will properly assess such events as Brexit and Trump’s presidency”, economist said. According to him, weak economic growth in recent years has created inequality in the distribution of wealth, income and opportunities. The increase in unemployment among the youth is the most dangerous moment.
According to economist, the central banks were able to avoid the crisis by artificially supporting financial markets. But it can not last too long. Artificial financial stability could be replaced with sharp volatility. To prevent this several steps must be taken such as increase in direct investment, decrease in taxes, resolving the problems of countries with a high debt burden, finally, carrying out global governance reform.