Krugman says Obama not doing enough, US needs stimulus II

Excerpts from Your World at 10 on CNBC-TV18 Watch the full show » RELATED NEWS World recovering from financial crisis: Paul Krugman BSE | NSE 09/02/12

In his popular column in the New York Times, Nobel prize-winning economist Paul Krugman has been critical of the Obama administration's efforts to rescue the US economy. Not enough was being the US goverment to combat the crisis, he said. In this interview with CNBC's Martin Soong, Krugman said while the US economy was no longer in a freefall, a second stimulus package was vital.

Here is a verbatim transcript of the exclusive interview with Paul Krugman on CNBC. Also watch the accompanying video.

Q: Where are we in terms of this crisis and in terms of recovery?

A: The good news is that it does not look like the second great depression. For a few months it did, we had a terrifying plunge but that seems to be levelling off. So when you look at all the various indicators out there, it looks like kind of we have stopped plunging.

Q: What are the metrics and indicators that give you this hope and this sense?

A: Partly, by looking at the job numbers in the US. We are still losing jobs but at a much lower pace--look at the various PMI's. The global picture says manufacturing appears to be stabilized worldwide, not growing much, services and PMIs showing growth in some places. So it looks, technically speaking, like a recovery though it doesn't feel like it.

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