Fiscal austerity measures being practiced in the eurozone will make a recession more severe, Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC, said in a presentation in Johannesburg.
“In the short term raising taxes and cutting government spending has a negative effect on growth,” Roubini said.
Restoring growth in some parts of the eurozone is “mission impossible,” he said, adding that the region’s policy response has been “inadequate.”
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