Tags: paul | Krugman | us | Economy | Suffer

Krugman: Economy to Suffer for Years to Come

Thursday, 24 Feb 2011 08:28 AM

The U.S. economy will suffer from the effects of the Great Recession for years to come due to half-hearted attempts by the Obama administration to spend the country out of its misery, says liberal economist and Nobel laureate Paul Krugman.

Stimulus programs and Federal Reserve monetary policies have not been aggressive enough to truly get the economy back on the path to recovery, says Krugman, according to the San Antonio Express News.

87916844.jpg
Paul Krugman
"We'll be living with a troubled economy for a long time to come," says Krugman, who was speaking in San Antonio.

The U.S. recovered from the Great Depression via public spending projects that include World War II.

Public spending would have worked today, but politicians decided to halt it on the fears that it would pump up inflation rates.

While inflation at home and abroad is a concern, it's mainly coming from emerging market economies and not from the U.S. fiscal and monetary policies.

Some say the Federal Reserve Chairman Ben Bernanke will have to deal with homegrown inflation soon, as rising consumer prices cannot be always be attributed to emerging-market countries, where higher commodity and food costs are forcing up prices at the overall level.

"If Bernanke wants inflation he’s going to get it," Gerald Smith, who helps oversee $117 billion as deputy chief investment officer of Baillie Gifford in the U.K., tells Bloomberg.

"I have personally been surprised that U.S. inflation hasn’t picked up already, but that’s a matter of time."


© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
The U.S. economy will suffer from the effects of the Great Recession for years to come due to half-hearted attempts by the Obama administration to spend the country out of its misery, says liberal economist and Nobel laureate Paul Krugman. Stimulus programs and Federal...
paul,Krugman,us,Economy,Suffer
247
2011-28-24
Thursday, 24 Feb 2011 08:28 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved