2012 will be worse, says Nobel laureate
January 30, 2012 13:02
If you thought 2011 was bad for the global economy, and especially for the developed economies of America and Europe, Nobel laureate Joseph E Stiglitz writes that 2012 will only be worse.
'This year is set to be even worse. It is possible, of course, that the United States will solve its political problems and finally adopt the stimulus measures that it needs to bring down unemployment to 6% or 7% (the pre-crisis level of 4% or 5% is too much to hope for). But this is as unlikely as it is that Europe will figure out that austerity alone will not solve its problems. On the contrary, austerity will only exacerbate the economic slowdown. Without growth, the debt crisis -- and the euro crisis -- will only worsen. And the long crisis that began with the collapse of the housing bubble in 2007 and the subsequent recession will continue,' he writes in an article published in project-syndicate.org, Kolkata. Read it here.
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