Europe must recover before Serbia, expert says
U.S. economist and Nobel Prize winner Paul Krugman has stated that Serbia is in a very difficult position.Source: Tanjug
Krugman said that the Serbian government could try to mitigate and limit the damage but that Serbia was a small country which could not hope for a full recovery unless Europe recovered first.
“In the U.S., which is the case I know best, we had substantial cuts in basic services, such as education, and then increased aid to the unemployed, who would then spend more, and in that way would invest in the infrastructure. Millions of construction workers are out of job, capital is practically melting, this is a good time for reconstructing bridges, building railways,” Krugman told RTS on Wednesday evening.
Krugman, who is well-known for his stands against austerity measures in times of recession, said that he himself was spending less than he did before the crisis and that he was much more cautious.
“I am probably more cautious too. Because, as an individual, I am worried that bad things might happen, so as an individual, I cannot accept the idea that my spending helps the economy, and that is not fair or reasonable. But, the governments have to take that into account,” the U.S. economist noted.