GLOBAL ECONOMY MAY TAKE AT LEAST 2 YEARS TO RECOVER

KUALA LUMPUR, Aug 10 (Bernama) -- The global economy may take at least two
years to recover but it managed to avoid the Second Great Depression following
aggressive stimulus packages introduced by governments around the world.

Nobel Laureate economist Paul Krugman, in stating this Monday, said the
economic crisis was, however, over in line with improving economic and export
growth.

"How do we get out? I think the technical answer is -- God knows," said
Krugman, who is also a professor of economics at Princeton University in the
United States.

Speaking at the World Capital Markets Symposium here, he said a phoenix-like
recovery as in the 1997-98 Asian financial crisis due to a quick rebound in
exports was not likely.

According to Krugman, the Asian economies will see "more bounce" than those
of the US and the Europe.

He also said that the global financial system should be restructured with
firm regulations to avoid a repeat of the economic crisis.

"We do not have the political will to do that just yet. I suspect clever
people can still make a lot of money from the financial system in the next few
years," he added.
-- BERNAMA