Nobel prize winner Krugman warns global economy to be depressed until 2011

Special Report:Global Financial Crisis　

STOCKHOLM, Dec. 8 (Chinese media) -- The 2008 Nobel

economics prize winner Paul Krugman said here Monday global economy would be

depressed until 2011 and maybe beyond.

Krugman, professor of economics and international

affairs at Princeton University in the United States, held traditionally a

lecture in public in Stockholm University Monday afternoon.

Paul Krugman, professor of economics and international affairs at Princeton University in the United States and the winner of 2008 Nobel Prize in Economics, attends a press conference after his lecture at Stockholm University, in Sweden on Dec. 8, 2008. Krugman said here Monday global economy would be depressed until 2011 and maybe beyond. (Chinese media Photo)
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"We could easily be talking about a world economy

that is depressed into 2011 and even beyond," Krugman told a press conference

after the lecture.

"The scenario I fear is that we'll see for the whole

world the equivalent of Japan's lost decade in the 1990s, that we'll see a world

of zero interest rates and inflation and no sign of recovery and it will just go

on for a very, very extended period," he added.

Krugman also pointed out that the falling of U.S.

housing market were going to be weaken and the price of the housing would have

another 10 percent to 15 percent to go.

Krugman will receive 10 million kronor (about 1.4

million U.S. dollars) Nobel Memorial Prize in economics for his work on

international trade patterns Wednesday.

The economics award was established in 1968 and

officially called The Sveriges Riksbank Prize in Economic Sciences in Memory of

Alfred Nobel.