Nouriel Roubini, Professor of Economics at New York University and Chairman of Roubini Global Economics speaks at the opening session “Rebalancing the Global Economy” at the Global Financial Forum in New York April 26, 2010. REUTERS/Mike Segar
On Friday October 29, 2010, 3:31 am EDT
LONDON (Reuters) – The U.S. economy is a “fiscal train wreck” waiting to happen that risks ushering in a period of stagnation featuring by minimal growth, high unemployment and deflationary pressure, U.S. economist Nouriel Roubini wrote on Friday.
In a commentary for the Financial Times, Roubini — one of the first economists to predict the housing crash in the United States and known as ‘Dr Doom’ for his pessimistic forecasts — said fiscal and monetary stimulus had prevented another depression.
But he said that further quantitative easing likely to be announced by the Federal Reserve next Wednesday will have little effect on U.S. growth in 2011, “so fiscal policy should be doing some of the lifting to prevent a double dip recession,” he said.
He said the U.S. remains on an “unsustainable fiscal course” and the likely make-up of Congress after elections next Tuesday, in which the Republicans look set for strong gains, virtually takes fiscal reform off the agenda.
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