NEW YORK (Reuters) – When the world feels like it is ending, it can be comforting to look to history and see that such global convulsions have happened before and the earth kept on turning.
A person walks by rows of stores closed during the outbreak of the coronavirus disease (COVID-19) in Manhattan, New York City, U.S., March 28, 2020. REUTERS/Andrew Kelly
For help during the coronavirus crisis, Reuters turned to Carmen Reinhart, an economist and professor at the John F. Kennedy School of Government at Harvard University. She is the coauthor, along with Kenneth Rogoff, of the book “This Time Is Different: Eight Centuries of Financial Folly.”
Q: What is your take on what we are seeing so far?
A: This didn’t start as a financial crisis, but it’s certainly evolving into one. You can’t have a standstill in economic activity and not expect it to have serious balance-sheet consequences. My expectation is that we will see a big increase in bankruptcies at the household level, at…