Professor of Economics and Political Science at the University of California at Berkeley and a former advisor to the IMF Barry Eichengreen said in an interview with German magazine Der Spiegel, that the U.S. economy is already recovered from the difficult times and begin to grow, but European still has problems. This was, according to the American, evidenced by a number of factors.
Thus, Eichengreen says, in the United States was reduced the tax burden and the citizens have more money they can spend. The U.S. companies gradually increase the amount of funds invested and even US Fed’s leadership positively thinks about the current economic state.
“The Fed, for example, has already begun to reduce its monthly purchase loans, through which it stimulates the economy and up to the present time it passed without any major problems.”
As for the economic problems in developing countries, they are likely caused by internal political problems, like those now seen in Turkey or Thailand, or unproductive expenditure of funds, such as in Brazil, where for the World Cup were built upscale stadiums, thinks the economist.
These funds, he believes, would be better to invest in education.
In conclusion, Eichengreen said that the United States still have a risk of new economic bubbles but the same problem remains in the European Union, especially in the European treasury bonds.
“Therefore, it’s too early to talk about the recovery of the European economy,” economist said.” The banking crisis is not over yet, the overall financial supervision will be ready only after several years, the growth rate also remains at a low level, and, as the recent elections to the European Parliament showed, there is also a political crisis in Europe.”
"Maybe Europe, by using partial solutions, will be able to survive another year but there is also the likelihood that in 2014 it will burst again." said Eichengreen.
Barry Eichengreen (born 1952) is an American economist who holds the title of George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the University of California, Berkeley, where he has taught since 1987.
He has done research and published widely on the history and current operation of the international monetary and financial system. He received his BA from UC Santa Cruz and his Ph.D. from Yale University in 1979. He was a senior policy advisor to the International Monetary Fund in 1997 and 1998, although he has since been critical of the IMF.
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