crisis should be tackled. kenneth arrow professor nomics america's at stanford university you're also the youngest nobel laureates to have been deported awarded the prize in economics in ninety seven to two it's really great to have you with us today. enjoy being here the global economy is still not fully recovered from the recent financial crisis so now we have an economy saying that we're going to go to another global recession another round or we're going to have another way for of crisis hit us what's your take on that i think the answer is we don't know. it leave it at that the american economy seems to be recovering on a fairly solid basis slow but i don't see any any particular obvious

instability that's. the european debt crisis is not being thoroughly results but at the moment all the media fires have been there day after and i was there not put out with their reduced. i am disturbed about the tendency which is partly true the united states were much more true in some parts of europe of torture austerity when we have. a condition of the fish and demand and supply employment i think the idea that you want to stimulate the economy. through government spending or some other good way he tax decreases is pretty clear we could be recovering faster from our problems the united states but we are we do and we haven't gone the extremes of say great britain or.

france or germany that has maintained a good economy so i'd move word of the recovery will be slower than need be here absolutely right the recession fears are actually the highest among the european union countries what. future do you see for a crease it has defaulted here weeks ago it really that bad ever was so scared of it that really that bad obviously creates problems for greece and that lenders may say well they defaulted once they'll be fault again although you have there's not much evidence that countries default than we go ahead to quite a nice recovery in the past. people will be difficult for greece to borrow money but maybe that's a good thing that will maintain discipline now i think i think they made a mistake by not the forty year earlier. said that they had do you think that would have saved them it would have the look because of cells in the bad trouble. by

overspending it was no i think is any conceivable course they ran up with a deficit that was. during times of prosperity that was. not could not sustainable. goes back to the olympics as a tool for which they probably should never have undertaken it was too much too much too costly for for greece now there are fundamental there are also fundamental long run problems with the greece as a result with a couple of other economies there they have rigidities in these are but these are real problems not financial problems but they are. it into the financial problems they have rigid labor laws we have for greece has what seemed to be extraordinarily generous social security system in far more generous the united states which could afford it a lot better. there are people retiring very early then of course the other problem greece of tax. recovery is going to collect its taxes it's going to be big problems

but you don't think that greece will leave the euro i don't think so maybe they should by the way but i don't think they. prove the euro is that it's very difficult to break away from it it can be done but the big price to pay is going to be paid to be dealing. like all these things benefits make her the long run sort of greece if well you see it was interesting of greece had had not been in the euro they probably would have been able to borrow the money that it. was going to lead to drachmas because they were the. nobody but they would demand a high interest rate so they would have been much worse off well we were better off actually because they've been disciplined. he's been allowed to run down badly there were some periods with twenty or thirty years ago when it looked like it was going off but in the short term political advantage led to conceding this one and see that one and then of course the corruption and the lack of adequate tax

collection which is my impression is enormous and i'm not at all sure it's been thirty rectified by the current reforms painful as they are because rich people the privileges of poor people don't do you think they maybe don't know a fact could we see is hilly and spain default right after greece i would think of leaking it but i don't see the it's it is much better control over its economy. and spain not only the problems of spain really a for school at all they have been very prudent they're not running if you have assess their problems entirely different they have very rigid labor laws and these labor laws make it to the. i've lived through high unemployment during periods of prosperity so i think we this is really a hurdle to do with these euro bond problems that i don't use their credit rating for the sake of just because of the economy was hobbled by bad labor laws but you

are is still under question because of countries like italy spain portugal greece where do you see time well i think you know there is an argument that you were was a big mistake to begin with what do you think is it a big mystery look i think it was probably premature. having a currency without being of a single state it's got a lot of problems in the. united states. essentially there is a central government giving out money to the poor part of the there's a problem if you have money for poor parts people can move one place to another of course they can move in the european union but language is a problem of languages are much much harder to move in europe than does the united states even apart from law now you've said in the beginning of the interview that the united states is getting itself out of a mess slowly but securely from what we know u.s. step now stands at almost sixteen trillion u.s. dollars exceeding d.d.p.

. will that continue to create instability for the global financial system and how will the u.s. exactly cope well that well of course i think of it greatly exaggerated for political reasons we have we have apparently a big debt problem of the moment that the interest rates the way they are and how this is easily. not a great strain of course we sued face for some point. and that as you turn over that it's going to be going to has the what you borrow one percent through of attempting to borrow. look. the basic problem is medical costs our medical care system is extremely inefficient very expensive we have pretty well most twenty percent if the seventeen or eighteen percent of national income goes to a medical care for that's private by the way but half of that's public and this is

squeezing everything. social security is a bit of a problem i think as such here is a minor issue. the things that are not health and not. social security. i think they are being cut in a very unfortunate way because many of them are point factors for example our education systems is under attack financially we can california we have a we have been cutting. his riches right now because of that's a recipe for disaster i know that you were in your teens when the great depression happened in the state of member very vividly love each other but you don't feel like anything like that is to is happening right now in america you know oh there's no comparison you do but you know this was the i mean this is this is the worst thing since the great depression ok question people feel like the government has preferred banks to them at this point and they're asking where where where is my

bailout do you think they have a point where all this is of all of those a certain amount of some of this true that the we have an economic system a financial system to be more precise which has led to and i think. the food or rather directly led to the big very large negative value of the american people these people in the incomes of these people are now getting back to the. recession levels. there is a there is a sense in which the inequality of income has this focus the inequality has gotten a lot worse whether that is not due the recession that was going on well before the recession and people were noticing that the inequality of income inequality of income do you think it will grow in the united states will last i don't know very part of it is a question of taxation course that's not the only reason there is also a problem of foreign trade

a manufacturing jobs have gone overseas to china now we still strong and great many industries our exports are going to manufacturing jobs are rising today but the manufacturing was that was the way by which you have high relatively high income jobs i mean middle middling but middling can jobs for people without very successful education. and that this has gone down greatly what do you make of occupy wall street what do you think it feel self well first i thought it was ridiculous they seem to have no they have no proposals no but it has changed the national attitude you have you big company quality has become on the political agenda and i do that i think very well about professor ira thank you very much for this interview pleasure.

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latest reports say there are no survivors from the crash of a russian savoy super jet airliner the wreckage of the state of the our jet was found on the side of a volcano in indonesia after it went missing on wednesday. continuing bodies in syria are undermining the united nations peace plan the u.n. envoy warns the blasts are putting the entire observers mission in jeopardy the roadside bomb blasts left several soldiers injured. and greece is left hanging as politicians fail to form a coalition government with the far left leader getting it resoundingly no to a bailout but the german chancellor demands help. yes we had lunch here in r.t.e. abhi back at the top of the hour with more updates in the meantime let's take a look what's happening in sports with paul.

thank you very much marina welcome to the world of sports here is what's coming out . european of marston's athletico madrid beat athletic bilbao three male in bucharest to win the second europa league title in three years. world number three roger federer is given a scan. on his way to the round of the great masters. and the sky's the limit in sky running spaniard louis hyundai's sets a new record as he reaches the peak of mt albert in just three hours and forty one minutes. but first athletic or madrid have won their second title in three years they beat fellow spanish side athletic bilbao three mail in bucharest it was a rather one sided contest from start to finish. scoring twice in the first half to put his side in control he became the first player in history to win the competition with two different clubs in two years the colombian also now has twenty

nine goals in the tournament in twenty nine a period appearances diego completed the scoring with five minutes to go i now need to pick themselves up ahead of the cup with all right final later this month. well action on the pitch was marred by trouble off it in the spanish capital clashes broke out between police breaking up because when several thousand people poured into a city center square where police had put up in a failed attempt to prevent the crowds from blocking traffic the violence started when a small group of fans started to throw bottles and other objects out police reinforcements entered the square to try and push the crowd back several people were arrested. meanwhile dobro new name on the russian cup proving his than celebrating their first ever win in the competition following a victory over deny moscow it was a cage. katherine burke and was increasingly looking like extra time before rubin's rahman and then co-founder when a dozen minutes from time one male the final score to life the tarzan outfit well

the now most wait for a cup conquest now stretches to eighteen years. spain meanwhile will be without their talismanic to find the colors puyo when they defend their european title next month the thirty four year old will be out for around six weeks after surgery on his right knee the barcelona captain has ninety nine caps featuring in every major tournament since the two thousand and two world cup. but we have to wait and see how the surgery goes and what the doctors say afterwards however it will be virtually impossible for me to take part and euro two thousand and twelve i'll need to take some time to recover from the operation meeting someone else who is in better shape will take my spot. elsewhere canada had moved top of group a at the ice hockey world championship in helsinki after a narrow three two victory over switzerland the reigning olympic champions had to come back from a goal down that the tehran gets left school to win in the third period in the other group a game slovakia because it's down

a four two. in the meantime in stockholm sweden have kept their one hundred percent record following their fourth straight victory germany five two while norway was too good for italy russia played their next game in group a late on thursday against denmark. to tennis and both roger federer and rafael nadal were through to the third round of the madrid masters although the world number three federer was given a scare along the way he lost the first set six four games canadian miller brian h. and how to use his experience to avoid his earliest exit into the sixteen time grand slam winner eventually climbing the second set seven five four winning tiebreaker. yeah you know i knew it was going to be extremely difficult match for me is already played plenty of clay court tennis itself to do is really quick and he really you know is a great serve so obviously it worked well for me here and for a long time it looked like i was going to come out of it and i just hung in there

got a little luck at times search well the times and i did up a really good tie breaker and in the third i'm extremely happy well there were no such problems for clay course specialist rafael nadal however he came through his second round match with russian nikolai diver denko in straight sets six two six two despite the comfortable nature of his victory the spaniard echoed concerns from novak djokovic about the slippery surface. i always dread my best to be to be ready to play. in good conditions when i am playing in my day it when the tournament was in the in the tournament is now we now do so. right here. knowing the nation will be difficult so you never arrive before you know when to. call in the women's event number four seed agnes go to advance good needed just an hour and five minutes to dispatch sound out any of italy sixty six governments line

twenty italians sixteen match winning streak he won in miami earlier this year looking in on this once again. now in the n.b.a. playoffs miami heat have reached the second round at the expense of the new york knicks their one hundred six ninety four when on wednesday ensuring a four one victory in their best of seven series the star man in game five was no bron james who finished with twenty nine points eight rebounds and seven assists they now face indiana pacers in the eastern conference semifinals series begins on sunday while the memphis grizzlies are still alive in their series with the los angeles clippers they've just one game by ninety two points to eighty. now the sky running where a new record has been set here in russia where we have nine days reaching the peak of mt albert in just three hours and forty one minutes already mountain a constable tough was there. montiel bruce is playing host of the sky running world series for the first time europe's highest mountain has always been one of the most

sought after climbs for dead air belts around the world and the inaugural sky race where their fleets ran not walked to speak turned out to be a great spectacle. starting from thirty five hundred meters above sea level human simply couldn't absorb oxygen properly that means breathing is hard work in itself but this guy runners and letting that get in their way they're just a nation the summit of mt all bruce the more experienced runners started from two thousand three hundred meters with this summit touching the sky at five thousand six hundred forty two they quibble and off fifty football fields italy's market i guess perry won the first race of the season at the vertical kilometer event and was eager to repeat his success but it was his fellow reigning sky run a world series champion lisa i'll bet at their demand outsider who braved the snow

and moved mountains to stop the clock at three hours and forty one minutes. the race was a little longer than i'm used to and the altitude makes the abreu strange something special it was very hard to get to the finish line but it's really great we had a chance to compete at such a great course. while six time world mountain running champion the guest perry was second to the top a minute behind the thirty five year old spin is. fantastic for me you know it is a great experience today and you know happy because when i left from my town you know and. we get to the. to go to the top of the europe you know and i did it not too many runners dared to challenge russia's call that their opening stage of the world series but those who did will surely remember their missing year for its leaving the event to become a significant stop on the sky running map because they about the above or itchy

groups. now international road cyclist mark victory day in style in the russian capital the last one hundred thirty kilometers stage of the five rings of moscow race stopped traffic on the usually gridlocked garden ring rushes a go for team code to show was the overall leader after four days of the competition and retain that advantage on the final day claiming overall victory even stevic finish second. round it off the podium in third place. i'm happy with the second place because today was stronger than me showed that at the first or the bonus. i do you lose because i made mistakes just because he was stronger he had fresh legs at the end. but could you do i want one. which was really important for me that the lads cost. i go home happy. finally in

baseball josh hamilton is no doubt still celebrating after joining an exclusive list of boxes the thirty year old leading his texas rangers to victory over baltimore by hitting an incredible four home runs in a single game in the league's one hundred forty three year history only fifteen players have money such a feat the achievement has sparked talks about his future how multan himself says he has no clue what will transpire between himself and the rangers before he can become a free agent in november rangers general manager john daniel says he wants him to remain as a rangers player for and i quote a long time the talk is still ongoing texas occurring top of the and i'll be standing this. well at all the sport for now i'll be back and a little under two hours time to join me that.

wealthy british style.

markets why not come to. find out what's really happening to the global economy with mike's cancer for a no holds barred look at the global financial headlines tune into kinds a report on r g.

as to the.

latest reports say there are no survivors from the crash of a flagship next generation russian airliner the wreckage of which was found on the side of ok no in indonesia. greece is left hanging as politicians failed to form a coalition government with a far left leader giving a resounding no to e.u. bailouts. and continued bombings in syria are undermining the united nations' peace plan the u.n. envoy warns the blasts are putting the entire observers mission in jeopardy. ninety am in the russian capital you're watching r t i'm marina joshie no survivors have been reported from the crash of a russian so why super jet airliner a rescue helicopter has discovered the wreckage of a plane on the side.