Nouriel Roubini 2013 Global Economic Outlook | NOURIEL ROUBINI BLOG

Sunday, March 24, 2013

Nouriel Roubini 2013 Global Economic Outlook

Nouriel Roubini : The tail risk of something disorderly in the eurozone – like a Greek exit or Italy and Spain losing market access that were severe risks in the middle of last year – have basically been reduced because they have announced this new program of bond purchases, the OMT, there is this new ESM, there is another half a trillion euros out there for banks and sovereign, because there is talk about a banking and fiscal union, and because now Germany has used the words about the periphery of the eurozone that are more constructive.

But if you look at the fundamental problem in the eurozone: lack of economic growth and continued recession, low potential growth because of demographics and lack of reforms, 2) debt sustainability - official and private – are too high, and 3) lack and loss of competitiveness, and a large external deficit that the private sector does not want to finance – those fundamental problems of the eurozone have not been resolved, they may have been pushed by a few quarters, but fundamental problems of growth, competitiveness and sustainability have not been resolved.

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.