1/2 Stiglitz, Professor Joseph - Nobel Prize winning economist

Troubles ahead for world economy
http://www.abc.net.au/7.30/content/2010/s2965891.htm

Broadcast: 27/07/2010
Reporter: Kerry O'Brien

JOSEPH STIGLITZ: It's almost sure that growth in the United States is going to slow markedly. Whether it slows from where it was to one half per cent or one per cent or to minus one half per cent isn't yet clear. I think what's been happening in Europe has been increasing the likelihood that we go into a double dip, for two reasons: one, it means that global financial markets are in a little bit more unsettled state. But secondly, the US had hoped to export its way out of the recession through a weak dollar. We had a weak dollar policy. We didn't call it that, but that's what was going on. But, exchange rates are like negative beauty contests in the current context: who is the ugliest? And, we were winning, the US was winning hands down until this year and Europe's financial troubles have put it in - have meant that it is doing much better in this negative beauty contest, so the dollar is stronger, and that's gonna make it more difficult for the US to export and that's going to mean that our economy is going to be all the weaker.

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[pretorious700]

Nobel prize is a political plum and nothing more now considering who wins it lately.