Roubini : Advanced Economies to grow slower | NOURIEL ROUBINI BLOG

Thursday, April 29, 2010

Roubini : Advanced Economies to grow slower

Nouriel Roubini, Co-Founder & Chairman,of RGE Roubini Global Economics, interviewed by the EconomicTimes of India
Roubini :"in my view, the growth is going to look better in US and also advanced economies in the first half because of a number of temporary factors: the fiscal stimulus, restocking of inventories, base effects in US, the government temporarily hiring immigrant workers to do a census that they do every 10 years, a series of tax policies like cash for clunkers on cars and tax credit for homebuyers and so on. So those are all affects that are going to fizzle out by the second half of the year and I see the weakness of the US household sector keeping the consumption growth weak overtime given that income growth is anaemic, labour income growth is anaemic and wealth relative to income is no low compared to the past. That implies that the private demand does not recover fast enough and the policy affects phased out, then you could have growth falling back towards 1.5% to 2%. It is well below a potential 3%. "

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Nouriel Roubini, (born March 29, 1958, Istanbul, Turkey), Turkish-born American economist and educator who was best known for predicting the 2007–08 subprime mortgage crisis in the United States and the subsequent global financial crisis.

Born to Iranian Jewish parents, Roubini moved with his family to Iran and Israel before they settled in Italy in 1962. After a year at Hebrew University of Jerusalem, he studied economics at Bocconi University in Milan (B.A., 1982) and Harvard University (Ph.D., 1988), where he specialized in macroeconomics and international economics. He joined the economics faculty at Yale University in 1988 and taught there until 1995, when he moved to New York University. He also served as a visiting scholar to the International Monetary Fund (IMF), was a research associate with the National Bureau of Economic Research (NBER), held single-year terms on the White House Council of Economic Advisers (1998–99) and at the U.S. Department of the Treasury (1999–2000), and cofounded (2004) the consulting firm Roubini Global Economics. Roubini spent much of his early career studying countries that experienced extreme economic failures, such as Mexico (in 1994), Thailand and other countries associated with the 1997 Asian financial crisis, Russia (1998), and Argentina (2000). He determined that each shared one common element: a massive current account deficit.(www.britannica.com)

Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.