Krugman wins Nobel eco prize

STOCKHOLM – The United States economist who won the 2008 Nobel prize for economics said yesterday the world economy could suffer a prolonged recession but might escape collapse.

“This is terrifying,” Paul Krugman, speaking after learning of his award, said of market chaos over recent weeks. But he added: “I’m slightly less terrified today than I was on Friday.”Krugman, a strong critic of the Bush administration, praised the efforts made by world leaders to staunch the crisis.”We’re going to have a recession and perhaps a prolonged one but perhaps not a collapse,” he said.The committee awarded Krugman the prize for work that helps explain why some countries dominate international trade.A prominent economist who writes columns for the New York Times, Krugman has long featured among the favourites to win a Nobel.He is a professor of economics and international affairs at Princeton University in the United States.- Nampa-ReutersBut he added: “I’m slightly less terrified today than I was on Friday.”Krugman, a strong critic of the Bush administration, praised the efforts made by world leaders to staunch the crisis.”We’re going to have a recession and perhaps a prolonged one but perhaps not a collapse,” he said.The committee awarded Krugman the prize for work that helps explain why some countries dominate international trade.A prominent economist who writes columns for the New York Times, Krugman has long featured among the favourites to win a Nobel.He is a professor of economics and international affairs at Princeton University in the United States.- Nampa-Reuters