Nov 30, 2010

Fiscal Austerity Will Lead To Debt Restructuring Among Nations

"A period of low growth and low inflation in the U.S. and Europe is being exacerbated by rashly implemented fiscal austerity that will stifle growth and eventually lead to debt restructuring among nations and international institutions, economist Nouriel Roubini said Monday.

Debt restructuring is most probably "inevitable," said Mr. Roubini, a professor of economics and international business at New York University and chairman of Roubini Global Economics.

Governments are kicking the burden of fiscal responsibility down the line to international institutions, while failing to address the economic stagnation that will come from severe budget cuts, he said at an economic conference in the Czech capital."

in WSJ

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