Nobel laureates are warning about the next financial crisis.

Elite economic researchers doubted the sustainability of the financial world to a crisis. Thus, economists clearly distanciruemsa from the Central Bank of the United States. They also see uncertain future for the Euro. This was written by Anja Ettel and Holger Chepic in the article “Nobel laureates warn of the next financial crisis”, published on the website of the newspaper Die Welt, reports UNIAN.

The greatest minds in the economy are warning about the next financial crisis. Despite the reforms of the past years, there are still gaps in control. Despite the good deals on the stock exchange and the stability of the situation, mistakenly believing that there was stability.

It is the result of a survey by the newspaper Die Welt, 18 Nobel prize laureates for Economics, which this week discussed the serious economic problems in Lindau on lake Constance.

Shortly before the sixth meeting of Nobel laureates in Economics, which is considered a kind of summit of economists, they clearly distanciruemsa from the President of the American Central Bank Janet Yellen. In late June, in a sensational speech, she said that in our time will no longer be the financial crisis.

“I wouldn’t bet on it,’ said Bengt Holmstrom, Nobel laureate in 2016. Every time we think that the bankruptcies will be no more, the risk increases”.

Even more clearly expressed Edward Prescott, Nobel laureate 2004: “With great confidence we can say that in the near future will be the financial crisis”.

Short-circuit in the system

Nobel prize winners return to the political agenda, the risk of a new crisis comes just ten years after the beginning of the recent financial crisis. A risk that many have already replaced in times of terror of a possible nuclear confrontation and new antics of the American President, the economic problems and deficiencies in the financial system decreased significantly.

A lot will depend on how you’ll react to the policy, emphasize the winners. “If the American administration in Washington will once again lose control, the crisis will be more probable”, says the winner of the 2007 Eric Maskin.

“Recognized by economists doubt that the financial world will ever be able to adequately prepare for crises. In the era of global digital networks is an illusion, says Daniel McFadden, Nobel laureate 2000. – Financial risks – it’s like the electricity in a huge network.”

As in the case of electricity supply, the financial system is also short circuit occurs.

“We do not have the necessary tools to monitor, control and cope with these problems. That’s why the next financial crisis is inevitable”, says McFadden.

• See ALSO: Lagarde does not rule out another global financial crisis

Message from Lindau

This again confirms the trend of the meeting: political messages from lake Constance to the entire world. At the previous event of this kind three years ago, Chancellor Angela Merkel made a splash with his keynote speech. Then the Chancellor accused the economists that they gave politicians advice that has nothing to do with real life.

This year the opening speech will be delivered by European Central Bank President (ECB) Mario Draghi. Probably, shortly before the crucial meeting of the ECB Council in September, it’s hard to convince economists in the sustainability of the single currency for crises. Most of the laureates don’t believe that the Euro will be on top after the financial and debt crisis.

“The Euro could flourish only if the EU put fiscal policy on a more sustainable base, and cope with the economic stagnation in those member States where labour productivity is relatively weak,” said McFadden.

“If the Euro will survive in the long term, must be not only unified monetary policy, but also a common fiscal policy,” said Eric Maskin.

Only one economist welcomed the Euro

However, award-winning economist Prescott considers it useless attempts: “I am very pessimistic about the Euro,” – said the scientist from the University of Arizona. “The only question is how much damage he will cause the Eurozone to its collapse”. The country needs to maintain its sovereignty in financial matters in the European Union. “There are easier ways of realization of the foreseeable advantages of the monetary Union”.

Countries could peg their currency to the German mark and adjust if necessary. “Some States will never adhere to budget rules. At least, it should be possible and state bankruptcy.” The word Prescott has a weight in the political sphere. He is studying the temporal sequence in economic policy, that is, the question of the extent to which interested parties do keep their promises.

Expert still sees a good future for the Euro. “A common currency can grow well, especially because America will start to lose money in the global competition due to the mismanagement of the dollar”, – says the winner of the 2002 Vernon Smith.

A world full of robots

The transition of the economic world in the digital space is also one of the topics that have been discussed in Lindau. While the leading minds of the IT world like Microsoft founder bill gates, have warned about the growing world of robotics and require, for example, the introduction of a tax on the robots, the majority of Nobel laureates is much less pessimistic.

“A world full of robots that do repetitive work – it’s a great spectacle,” said Prescott, who is very pessimistic on many other issues. Laureth McFadden also said activation digital processes evidence of the success of the economy. A world full of robots “is not a cause for concern” and an indication of how well set up innovative power. “The economy, which is especially liberal, will receive the maximum benefit”.

McFadden, who received the Nobel prize in 2000 for his research on the analysis of important human decisions, expressed much more caution. “Robots, artificial intelligence and digital communications can significantly improve human life. At the same time, they also have a devastating impact because they marginalisiert business models, workforce and political and economic institutions.”

It is therefore important to ensure that these innovations defined measures to ensure that the benefits of the technological revolution will benefit society as a whole and not just a few beneficiaries.

• See ALSO: Tetris on a global scale. Why shouldn’t the apocalyptic predictions

The biggest problem of mankind? “Ignorance”

However, most of the winners do not consider a pressing issue in the active development of technology, along with their side effects. Instead, economists see the biggest threat to humanity in the ongoing climate change. “Paris protocols on climate protection must be implemented, despite the fact that the US recently refused from them,” urged the Finnish Nobel prize winner Holmstrom.

The laureates also drawn attention to the disappearance of the species on the planet that is associated with people. “The destruction of biodiversity is happening at an unprecedented pace,” warns Robert Aumann, Nobel prize winner 2005. The solution is very complicated, but you need to try. “First of all, the poorest, underdeveloped countries should receive incentives to stop the environmental destruction that is happening there especially quickly.”

Closely connected with this problem of poverty. Vernon Smith, who was awarded the Nobel prize in 2002 for research on the capital market, the only solution considers the abolition of the current policy development. “The previous schemes of transfer [of the funds] should be significantly reduced, because they create a dependence,” he said. Instead, we need to help them become more independent”. “The fight against poverty so far with no success”.

Christopher Sims, winner of the 2011, even more summarized the greatest problem of mankind. He answered the question with one word: “Ignorance.”