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IMF Chief Warns of Financial Disaster Driven by Inequality

international | anti-capitalism | press release

Friday January 17, 2020 18:03

by Kate Zeller - Jubilee USA Network

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IMF Head Kristalina Georgieva warns of a return of the Great Depression driven by inequality and financial sector instability in a speech delivered at the Peterson Institute of International Economics.

Washington DC - IMF Head Kristalina Georgieva warns of a return of the Great Depression driven by inequality and financial sector instability in a speech delivered at the Peterson Institute of International Economics. Georgieva highlighted new IMF research that compares the current economy to the "roaring 1920s" economy that culminated in the great market crash of 1929.

"The IMF delivered a stark message about the potential for another massive financial disaster that we last experienced during the Great Depression," noted United Nations finance expert and Jubilee USA Director Eric LeCompte. "With inequality on the rise and concerns of stability in the markets, we need to take this warning seriously."

In addition to financial sector stability and growing inequality, Georgieva shared that we face additional challenges in the current economy.

"Trade problems and climate-driven weather events pose additional risks at this time," said LeCompte. "It's imperative that we ensure the financial sector is free of risky behavior and corruption if we want to protect ourselves from another global financial crisis."

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