Krugman says Obama not doing enough, US needs stimulus II
Published on Tue, Aug 11, 2009 at 15:18 | Source : CNBC-TV18
Updated at Tue, Aug 11, 2009 at 16:48
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Krugman says Obama not doing enough, US needs stimulus II
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. He says, not enough is being done. In this interview with CNBC's Martin Soong, Krugman says while the US economy is no longer in free fall, a second stimulus package is vital.
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.
