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00:00You said it might be a choice between recession or high inflation for longer. Is it now a choice between recession and financial instability or higher inflation for longer. So that's an important addition. I think for certain countries especially those who are importing the US monetary policy but do not have anywhere near the robustness of the US. That's a real issue. And we've got to somehow figure out how to go through this. John you and I know that we tend to focus on interest rate risk particularly what the Fed is going to do. And on credit risk economic conditions etc. We tend to ignore liquidity risk. And that is something that we need to pay a lot more attention to. Well we've been paying attention to that in the U.K. in a major way this week now that we've seen the Bank of England driven to intervene at the long into the gilt market. We saw that the IJA in the last week have to come in and step into the affects market support the Japanese yen the ECB before any of this had to set up an instrument to get ready to put a lid on Italian yields as they set to raise rates even further. China's been warning investors that they're willing to step in. Mohammed we talked about this earlier this week. Who's next. Who's willing to blink. And can we get to that equilibrium that new equilibrium without central bank intervention every step of the way. That's the major question. And these interventions to be clear are temporary. I think you used the word Band-Aid. We call it plaster here and drawn both. But you know this is these are just the bandaids. And it tells you that the global economy is not clearing on its own or if it's allowed to clear on its own there's gonna be a lot of collateral damage. You know you know my view when you distort an economy for so long getting out of the distortion is by definition problematic. And that is what we're learning. But we have no choice to get out of the distortion because if we don't the inflation issues is gonna be even more problematic. I think you and I have been warning people all of you who are looking for a pivot Joel Weber be careful what you wish for because this pivot only happens if you have an economic accident or financial accident. And the journey into an economic and financial accident is a very painful journey.

El-Erian on Fed Pivot: 'Be Careful What You Wish For'

Mohamed El-Erian, chief economic adviser at Allianz and Bloomberg Opinion columnist, says liquidity risk needs more attention and expresses his concerns about central bank interventions during an interview with Jonathan Ferro on "Bloomberg The Open." El-Erian's opinions are his own. (Source: Bloomberg)