Europe is wrong on austerity that may sink the global economy deeper into the 1930s-style depression which has already begun, Nobel Prize winner Paul Krugman tells Reuters in an exclusive interview.

“There will be a need to rein in the debs eventually, but right now it’s just a spiral,” Krugman says. “It’s like a medieval doctor who … you’re sick so he bleeds you and you get even sicker so he bleeds you some more. It’s just not working.”

This entry was posted on Friday, February 3rd, 2012 at 3:13 pm and is filed under Economics, Reuters video, The Debt Crisis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.