Noted economist warns of double-dip Depression!
NEW YORK - August 23, 2009 - Nouriel Roubini, one of the few economists who accurately predicted the magnitude of the world's recent financial troubles, sees a "big risk" of a double-dip Depression, according to an opinion piece posted on the Financial Times website on Sunday.
Roubini, a professor at New York University's Stern School of Business, said it appears the global economy will bottom out in the second half of this year, and that U.S. and western European economies will likely experience "anemic" and "below trend" growth for at least a couple of years.
Yet he warned that policymakers face a "damned if they do and damned if they don't" conundrum in trying to unwind their massive fiscal and monetary stimuli to keep the global economy from toppling into a Depression.
He said that if policymakers try to fight rising budget deficits by raising taxes and cutting spending, they could undermine any recovery.
Roubini, a professor at New York University's Stern School of Business, said it appears the global economy will bottom out in the second half of this year, and that U.S. and western European economies will likely experience "anemic" and "below trend" growth for at least a couple of years.
Yet he warned that policymakers face a "damned if they do and damned if they don't" conundrum in trying to unwind their massive fiscal and monetary stimuli to keep the global economy from toppling into a Depression.
He said that if policymakers try to fight rising budget deficits by raising taxes and cutting spending, they could undermine any recovery.
