A trader reacts at the New York Stock Exchange on March 9. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index all notched up their worst daily declines in years over concerns of a possible oil price war and economic slowdown resulting from the coronavirus. Photo: Xinhua A trader reacts at the New York Stock Exchange on March 9. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index all notched up their worst daily declines in years over concerns of a possible oil price war and economic slowdown resulting from the coronavirus. Photo: Xinhua
A trader reacts at the New York Stock Exchange on March 9. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index all notched up their worst daily declines in years over concerns of a possible oil price war and economic slowdown resulting from the coronavirus. Photo: Xinhua
Andy Xie
Opinion

Opinion

The View by Andy Xie

Three ways the coronavirus could trigger a global financial crisis – and why central bankers are to blame

  • Heavily leveraged tourism-related companies such as airlines, the commercial real estate sector and the residential property market are all vulnerable pressure points
  • Cutting interest rates will not help these sectors, but it will boost speculation

A trader reacts at the New York Stock Exchange on March 9. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index all notched up their worst daily declines in years over concerns of a possible oil price war and economic slowdown resulting from the coronavirus. Photo: Xinhua A trader reacts at the New York Stock Exchange on March 9. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index all notched up their worst daily declines in years over concerns of a possible oil price war and economic slowdown resulting from the coronavirus. Photo: Xinhua
A trader reacts at the New York Stock Exchange on March 9. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index all notched up their worst daily declines in years over concerns of a possible oil price war and economic slowdown resulting from the coronavirus. Photo: Xinhua
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Andy Xie

Andy Xie

Dr Andy Xie is a Shanghai-based independent economist specialising in China and Asia, and writes, speaks and consults on global economics and financial markets. He joined Morgan Stanley in 1997 and was managing director and head of the firm’s Asia-Pacific economics team until 2006. Prior to that he spent two years with Macquarie Bank in Singapore, where he was an associate director in corporate finance. He also spent five years as an economist with the World Bank. He was voted one of the 50 most influential persons in finance by Bloomberg magazine in 2013.