Krugman: The United States had fallen into disrepute
Introduction words: “New York Times” 31, published a Nobel laureate in economics – Paul Krugman (Paul Krugman)’s column, the author said that the crisis the United States lost its reputation and credibility, but in response to the crisis , the U.S. approach is correct, compared to European leaders were irresponsible, but unfortunately now the United States no longer has to persuade their leadership skills.
Ten years ago, “Time magazine,” appeared on the cover of the then Treasury Secretary Robert – Robert Rubin (Robert Rubin), Federal Reserve Chairman Alan – Alan Greenspan (Alan Greenspan) and then-Deputy Treasury Secretary Lawrence – Summers (Lawrence Summers). “Time magazine,” these three giants as the “Committee to save the world”, praised them for their leading global financial system through a crisis. That crisis is quite scary at the time, but now today we are experiencing is pale into insignificance compared to the crisis.
Three people on the cover are all Americans, but did not feel anything wrong. In any case, in 1999, in response to the global crisis on the United States there is no doubt play a leadership role. Such leadership position in part from the wealth of the United States, but more important aspect, which reflects the United States is a model for everyone. At that time everyone believed that the U.S. is aware of how to properly develop the financial state.
Is really not what ah!
Do not have to care about the Big Three in the two later became a magazine cover villain, the media is usually ushered in after the god-discredited such a thing. (Now in charge of the National Economic Council, Mr. Summers is still growing strong.) Far more important is that we have in the past for their advocacy of financial integrity has been proven pale and weak, previously we also energetically to persuade other countries to change their mode of operation it.
Indeed, the United States is now but now looks like an economic wheat Randolph: For many years a respected, even feared, but the results only to find nothing but hoax.
In early 2000, when the 20th century, the 90s, when the economic crisis died down, Mr. Summers gave a speech, and now reading painful. When talking about the root causes of that crisis, when Mr. Summers pointed out the crisis countries, gaps, and implies that it is not as good as at the United States. Can be summed up in these places is the “strong capital adequacy and supervision of banks” as well as a reliable and transparent corporate accounting. Oh, my God!
Incidentally, Mr. Summers, an analyst with speech, referred to by economists Simon – Johnson (Simon Johnson). In this issue of “Atlantic Monthly”, the former IMF chief economist and currently professor at Massachusetts Institute of Technology, Mr. Johnson wrote that America’s current predicament with the past, Russia and Argentina’s crisis “strikingly similar”, including the crony capitalists played a key role.
He wrote, in the United States and in the Third World, as “large corporate interests (the United States is the financier) in the manufacture of a crisis to play a central role in the government’s covert support of the stakes continue to increase until the last non – inevitably collapse. even more alarming is that they are now use their influence to stop the rapid decline and allow the economy to stop the various reforms needed. ”
As a result, the day before yesterday “The Times” article about Obama’s response to the European title of the article is called “English-speaking pre-trial capitalism,” not surprising.
Now, of fairness, we must say that the United States is far not the only one bank failures in the country. Many European leaders continued to deny the European continent’s economic and financial problems, and in fact the problem may be as severe as the United States – but much stronger in these countries the social safety net means that we may have to suffer much greater pain. But this crisis, the United States has lost most credibility and most of the leadership, it is a fact.
This is a very bad thing.
Like many other economists, I have been recalling, “the Great Depression”, to look for can help us avoid a repetition of the experiences and lessons learned. The early 20th century, 30 the most significant point is that the world’s response to the crisis in major economies, has failed to take co-operation greatly reduced.
Specific circumstances of the current crisis are very different, but the need for cooperation remain. President Obama said this week, most is: “We all have to take measures to boost the economy. We do not want this situation: some countries have made extraordinary efforts, while other countries do nothing.”
However, this is precisely the situation we face. Even the U.S. efforts on the economy I do not think is sufficient, but far higher than in most other wealthy countries will for action. In theory, this week’s G20 summit should be an opportunity for Obama, denounced, calling in particular, the European leaders to take action quickly.
But now Today, foreign leaders have no mood to listen to speeches by U.S. officials, even when the Americans the right time (for example, this time).
The financial crisis has brought a lot of costs, one of which is the destruction of the reputation of the United States, we have the loss of this asset at the same time is what we and the world at a time when it is most needed.
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