Even after the virus drove the biggest economic slump in nearly a century, bankruptcies have been somewhat staved off by massive government stimulus and central-bank easing. But the path of global quantitative easing “is not a sustainable one,” and many countries could face a debt crisis just as their economic recoveries materialize, Reinhart [the World Bank’s Chief Economist] said.
“This did not start as a financial crisis, but it is morphing into a major economic crisis with very serious financial consequences,” she said.
