 | |
Paul Krugman /Bloomberg
|
 |
|
Nobel economy laureate Paul Krugman of Princeton University dismissed talk of an economic recovery among some optimists based on the recent upward trend in the U.S. stock market, and said people will not be able to feel the recovery until next year.
In a press conference held at the Foreign Press Center in New York on Monday, Krugman warned that people are jumping to overly optimistic conclusions when there are not yet any real signs of recovery, despite the fact that some improved indicators began to boost investment.
The U.S. economist said that the recession may be declared over sometime late this year but it cannot be considered the real end. ˇ°The 2001 recession was declared over in November [that year] because industrial production and GDP turned slightly upwards at that point. Unfortunately, unemployment continued to rise for another year and a half after the recession supposedly ended,ˇ± he added.
Krugman admitted that he does not know how the world will get out of the global recession that started at the end of 2007. But he reiterated his conviction that the world will not be able to rise from this recession unless it sees ˇ°major bank cleanups and sustained fiscal stimulus until the private sector can repair balance sheets enough to start spending again.ˇ±
(englishnews@chosun.com )
|
