Asked how long the global crisis would continue, he said there were actually two crises: "A financial crisis and a conventional economic crisis. When the origin of the crisis lies in the financial sector, typically, downturns are a deeper and longer and this is a very severe serious financial sector crisis. And we can expect a very long and difficult period of recovery," he said.
Stiglitz justified his pessimism, giving the example of the economic downturn that hit some Asian countries in 1997-98. They were able to recover quickly, partly because there was demand for their exports. But now, countries like the US cannot rely on exports because markets everywhere are weak, he said.
Image: David P. Good, Chief Representative, North America, Tata Sons Ltd, on the panel discussing US-India Economic Synergy, at the India Business Conference, Columbia Business School, April 10. | Photograph: Paresh Gandhi
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