The spread of the epidemic has caused a shock to the world economy, the US stock market has repeatedly melted, and the US crude oil has experienced a historical "negative oil price" phenomenon. At present, through a series of stimulus and control measures, the global epidemic situation has entered a platform period, and the global economy has stabilized. But has it reached the bottom of the world economy? How should the economy recover in the future? NetEase Economic Research Bureau recently interviewed Eric Maskin, Chair Professor of the Department of Economics at Harvard University.
NetEase Economic Research Bureau (NERB) ：What do you think of the development ofthe world economy and where is the bottom? At present, how will the world economy recover?
Eric Maskin：I don’t think we are at the bottom. In the speech that I just gave,I said that financial markets have not yet bottomed out. There was a temporary dip in the stock market, but stocks went back most of the way in a short time. I don’t think that’s sustainable. I think the economy has been hit too hard for financial markets to stay so high. I think they are going to fall and when they do , that is going to have an adverse effect on real economy .
I am afraid we are on a long way from recovering from this very serious recession. I think in all probability it willbe more serious than the one in 2008-2009. Whether it will turn into a great depression like the 1930s will depend on policy response, but almost certainly that it will be worse than the recession ten years ago.