Troubles ahead for world economy

Australian Broadcasting Corporation
Broadcast: 27/07/2010
Reporter: Kerry O'Brien

Nobel Prize winning economist Professor Joseph Stiglitz speaks with Kerry O'Brien

KERRY O'BRIEN, PRESENTER: The election campaign is being conducted in a budget framework based on the Australian economy returning to strong growth. That in turn is premised on the Chinese economy continuing to boom, but the US and Europe can still impact significantly, both on China and Australia, and their immediate future is still deeply uncertain.

Joseph Stiglitz is a Nobel laureate, a former chief economist of the World Bank and he chaired Bill Clinton's presidential council of economic advisors.

His latest book, 'Freefall', is a worrying critique of the root causes of the Global Financial Crisis, and despite President Obama's recent banking reforms, he says it could happen again. He's also predicting another US economic slowdown.

The veteran economist is on a lecture tour in Australia and I spoke with him in Brisbane today.

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