Gita Gopinath has compared the high rise in markets today to the exuberance before the dot-com bubble. (Photo: X profile) Show Quick Read Summary is AI Generated. Newsroom Reviewed

A correction at the Wall Street may lead to a global crisis worse than the dot-com crash, considering the high global exposure to US equities, warned Gita Gopinath, the former chief economist at the International Monetary Fund.

"The exposure of the world to US equities is at record levels. A stock market correction would have more severe and global consequences as compared to what followed the dot-com crash," Gopinath said, in an article she penned for The Economist on Wednesday.

The Harvard University professor argued that both the American and international investors have become "dangerously dependen

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