Krugman: World headed to ‘nasty recession’
Speaking in Sweden where he’s accepting a Nobel Prize for economics, Princeton economist and New York Times commentator Paul Krugman told Reuters the world is headed for a deep recession.
Paul Krugman … said the plan to recapitalize banks has the potential to heal financial institutions, unlike the U.S.-led plan to buy bad debt that preceded it. …
In his interview with Reuters, Krugman warned that the crisis has already inflicted serious damage on the world economy.
“There is a tremendous amount of downward momentum built into the real economy from this crisis,” he said. “Even if we unlock the credit markets, we probably still have a nasty recession ahead of us.”
