The world economy has avoided "utter catastrophe" and industrialized countries could register growth this year, Nobel Prize-winning economist Paul Krugman said on Monday.
"I will not be surprised to see world trade stabilize, world industrial production stabilize and start to grow two months from now," Krugman told a seminar.
"I would not be surprised to see flat to positive GDP growth in the United States, and maybe even in Europe, in the second half of the year."
The Princeton professor and New York Times columnist has said he fears a decade-long slump like that experienced by Japan in the 1990s…
"In some sense we may be past the worst but there is a big difference between stabilizing and actually making up the lost ground," he said. "We have averted utter catastrophe, but how do we get real recovery?
In January and February, Paul Krugman spent column after column criticizing Obama’s Stimulus Plan. It wasn’t enough, he said. It wasn’t going to work, he said. I found it kind of painful to listen to my favorite new President and my favorite Columnist Nobel Prize winning Economist having a spat. So what is this? Krugman sees the end in sight? That’s some good news from a doubting Thomas of the first order. We’ll see…
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