BoG governor expresses concern over risk of new global economic recession

Bank of Greece governor Yiannis Stournaras on Thursday expressed his concern over the risk of a new global economic recession and warned that in such a likelihood monetary policy would not be able to lift -on its own- the burden of defense against a new crisis.

Speaking during a seminar organized by the central bank in cooperation with the Athens Academy on: “The crisis of ’29 and Greece: Economy, Political and Institutional View”, the central banker noted that fiscal policy should play a bigger role in countries with adequate fiscal space or even a strong current account surplus.

Stournaras underlined that central banks can no longer fortify the global economy against any danger and said that uncertainty in the relations between Britain and the European Union, geopolitical concern in the Middle East, a trade war and its repercussions on Asian economies, are some of the main challenges facing the global economy, raising concern over the possibility of a new global recession.