Bernanke is said to be a student of Japan's lost decade. And yet he clearly did not anticipate nor has he deftly managed this global economic meltdown.
STOCKHOLM (Reuters) - Paul Krugman, winner of this year's Nobel economics prize, said on Monday that the world could face a Japan-style, decade-long slump.
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"A scenario I fear is that we'll see, for the whole world, an equivalent of Japan's lost decade, the 1990s -- that we'll see a world of zero interest rates, deflation, no sign of recovery, and it will just go on for a very extended period," he told a news conference.
"And that's unfortunately very easy to see happen."
..."We can easily be talking about a world economy that is depressed until 2011 and maybe beyond," Krugman said.
"If there's a safe place I can't see it."
Nobel winner Krugman's worst case: a lost decade
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