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Leading US economist Laurence Kotlikoff says he remains optimistic about solving the big structural problems plaguing global finance, but he has a grim prognosis for the US if it doesn’t change fiscal and monetary policies.
“We’re heading the way the British Empire went, it’s inevitable” he says. “The [US] dollar is going to give way to the yuan as the global currency at some point, it’s just a matter of time.”
Kotlikoff is a Professor of Economics at Boston University and will be in New Zealand this week as the Sir Douglas Myers Visiting Professor to Auckland University.
He was named by The Economist as one of the world’s 25 most influential economists in 2016 and that best- real revenue — which will mean astronomical tax rates if the US stays on its current path.
“It’s another way of saying that the country is broke.”
Kotlikoff suggests “the power economics to solve future problems” as a headline for this article.
It’s a line that hints at an underlying sense of hope that more serious financial and economic reforms will be embraced eventually.
Since the global financial crisis he has been a strong advocate for more radical reform of the global financial system.
“We have to move away from this highly leveraged banking system, which is also highly opaque, to something which has no leverage.”
We were seeing central banks repeat low interest rate policies as will present a seminar “Our Global Economic Future and How to Fix It” at Auckland University Business School tomorrow at 2pm.