Tags: Nouriel Roubini | Paris | attack | economy

Roubini: Paris Attacks May Boost Eurozone Economy With Monetary Stimulus

Roubini: Paris Attacks May Boost Eurozone Economy With Monetary Stimulus
Paris

By    |   Wednesday, 18 November 2015 09:00 AM

Economist Nouriel Roubini said the terrorist attack in Paris may help to boost the eurozone economy if the region’s central bank decides to boost monetary stimulus even more than originally planned.

In an interview with CNBC, the economist known as “Dr. Doom” for his dire predictions for the global economy said the effect of the attacks will be “modest” unless more violence follows. The European Central Bank is expected to begin a second round of quantitative easing after its December meeting.

The Islamic State, also known as the Islamic State of Iraq and al-Sham (ISIS), claimed responsibility for the Nov. 13 attacks that killed at least 129 people and left more than 300 injured in Paris. France responded with police raids across the country to prevent additional attacks and a bombing campaign against ISIS targets in Syria.

Roubini also said the a U.S. recession is unlikely even though third-quarter GDP was estimated to be worse than economists had forecast.

"I think the chances of a U.S. recession are very low. To have a U.S. recession, either you have to have a hard landing in China or you need to have a situation in which the Fed starts hiking too much too soon," said the founder of Roubini Global Economics. "That's unlikely, it's going to be the opposite, or a situation in which it starts hiking too late and the situation starts to get out of control and you have to tighten."

On China, Roubini said he forecasts the world's second-largest economy will experience "a bumpy landing" as it becomes more consumer-oriented. The country's growth has mostly been driven by factory production and construction, which are both slowing.

He also said that an interest rate hike in December or March by the Federal Reserve is largely irrelevant to market's long-term performance. The more important consideration is the long-term pace of interest-rate hikes.

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Economist Nouriel Roubini said the terrorist attack in Paris may help to boost the eurozone economy if the region's central bank decides to boost monetary stimulus even more than originally planned.
Nouriel Roubini, Paris, attack, economy
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2015-00-18
Wednesday, 18 November 2015 09:00 AM
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