he thinks the euro zone debt crisis should be tackled. kenneth arrow professor of folk nomics americas 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. enjoyed 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. 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 of. the european debt crisis is not being thoroughly results but at the moment all the media fires have been did they have put it that was that they're 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 too much austerity when we have. a condition of deficient demand and supply one point and 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 we haven't gone to the extremes of say great britain

or. france or germany that has maintained because we can only. 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 the fall together. you have there's not much evidence that countries default or than we go ahead to quite a nice recovery 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. i said that they have to think that would have saved them it would have the big of themselves

a little bit trouble but by overspending it was no i think as any conceivable course they ran up with a deficit that was. during times of prosperity that was not. not not sustainable. they read. goes back to the olympics of what is a tool for which they probably should never have undertaken it was too much too much too costly for coverage for greece now there are fundamental there are also fundamental long run problems with the greece as there is 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 have

a problem with recent tax. recoveries 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. throw 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 begin with. 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 in drachmas because they were the. nobody but they had demand a high interest rate so they would have been much worse off well we were better off actually because they've been disciplined. and he's been allowed to run down badly there were some periods but twenty or thirty years ago when it looked like it was going out but in the short term political advantage led to conceding this one and

seeing 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 the fact that 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 their problems entirely different they have very rigid labor laws and these labor laws make it. i've lived through high unemployment during periods of prosperity so i think we this in this way really have 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. bad labor laws but you are still

under question because of countries like italy spain portugal greece where do you see the time well i think you know there is an argument that you were a big mistake to begin with what do you think is it a because i think it was probably premature. having a currency without being of a single state it's got a lot of problems the. united states. essentially the 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 that is the united states even apart now you've said in the beginning of the interview that the united states is getting itself out of a mass slowly but securely from what we know u.s.

step now stands at almost sixteen trillion u.s. dollars succeeding 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 got 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 stupid face will at some point rise and that as you turn over that it's going to be going to has the what your bar at one percent of attempting to. look. the basic problem is medical costs our medical care system is extremely inefficient very expensive we have pretty much twenty percent if the seventeen or eighteen percent of national income goes to a medical remember half 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 were point factors for example our education systems is under attack financially we can california we have a we have been cutting. education is right now because of it'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 led me to the 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 although there's a certain amount of sentimentality but it is 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 very large negative value of the american people these people in the incomes of these people are now getting back to the pre the. recession levels. there is a there is a sense in which the inequality of income has. gotten a lot worse whether that is not to the recession that was going on well before the recession and people were noticing that the inequality of. the inequality of income do you think it will grow in the united states with. 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 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 growth of high income jobs i mean you know middle middling but middling can jobs for people who are not very successful educationally. and that this has gone down greatly what do you make of occupy wall street what do you think the itself well first i thought 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 of that professor thank you very much for this interview frederick.

wealthy british. market why not the family. find out what's really happening to the global economy with much cause or for a no holds barred look at the global financial headlines to an end to kaiser report on our.

elite. are live. at least sleep. sleep sleep sleep sleep sleep. sleep sleep sleep sleep. sleep if the so. please. me fifty feet. if. you feel. safe to eat.

sixty six.

russian president vladimir putin forces u.s. counterpart he's pulling out of the g. eight summit in the state of maryland next week at cons just days after put in a return to the top job instead he'll be sending prime minister dmitry medvedev. reports a rescue teams are looking for bodies of the victims and trying to reach the crash site of a russian next generation airliner in indonesia. and to the strong explosions rocked damascus with dozens reported dead and in the capital has recently been struck by a number of blast mainly targeted at military installations the u.n. warns a spate of violence could put its observer mission in jeopardy. if they had lines here in the back of the top of the hour with more updates for you and the meantime let's see what's happening in sports.

thank you very much marina welcome to the world of sports here is what's coming up you appear as a cold madrid. three nil in bucharest two in the second europa league title in three years. is all. world title rematch with i'm a colonies counsel to the light welterweight champion to run the drugs to. the limits and. sets a new record as he reaches the peak of martel burst in just three hours and forty one minutes. before let's go madrid have won their second europa league title in three years they beat fellow spanish side offer to build all three mail in bucharest it was a rather one sided contest from start to finish with striker scored twice in the first toff to put aside the in control if you can 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 and twenty nine appearances. diego

completed the scoring with five minutes to go now need to pick themselves up out of the company all right final later this month. you know no words can't express the joy that i feel now after everything that was said when i arrived at athletico madrid some people said that it was a mistake to sign me and i would like to say now publicly that those who criticize me they made the mistake we've had ups and downs and difficult moments but i think we really deserve to finish the season like this. you let me sit on this i feel personally responsible for this result the difference between the two teams is not as great at what we've seen tonight on the pitch so as i say i feel totally responsible for this result. well action on the pitch was marred by trouble off it in the spanish capital clashes broke out between police and fire and celebrating our place because when several thousand people poured into a city center square where police had put fences up in a failed attempt to prevent the crowd 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 arrests were made. meanwhile there is a brand new name on the russian car celebrating the first ever win in the competition following victory over it in a moscow it was a cagey if a bug was looking like extra time before rubin's romano out and then carry the winner at twelve minutes from time one nil the final score as the numbers raised for a cup conquest now stretches to eighteen games. elsewhere canada have moved top of the ice hockey world championship after a narrow three two victory over switzerland in helsinki the reigning olympic champions had come back from a goal down cut-n. run gets laughs scored the winner in the third period in the other group a game slovakia big kazakstan a fourth two. in the meantime in stockholm coho sweden have kept their word.

hundred percent record for the fourth straight victory the swedes beat germany five two while norway were to be fatally russia play their next game in group b. later on thursday against denmark. now to the news that boxing fans had feared the light welterweight world title rematch between lamont peterson and i'm a card has been called off the bow scheduled for may the nineteenth has been cancelled after the world champion failed a random drugs test pages and tested positive for synthetic testosterone in march where he was negative in a follow up test last month the twenty eight year old i.d.'s and w.p.a. belt holder can't get a hearing until four days before the flight forcing its cancellation car now fight for the vacant belts against an unnamed opponent on june thirtieth. in the n.b.a. playoffs miami heat of reach the second round at the expense of the new york knicks there one hundred six ninety four when on wednesday and sure enough for one victory in the best of seven series the star man in game five of bron james he finished

with twenty nine points eight rebounds and seven assists they've now face indiana pacers in the eastern conference semifinals series begins on sunday meanwhile the memphis grizzlies are still alive in their series with the los angeles clippers they want game five ninety two eighty game six in the series is on friday as for the heat well their attention now turns to round two. every time you advance in a series you grow because you go through adversity you go through some tough times and you have to learn how to make adjustments but stay true to your identity the whole time and learn how to put a team away now to tennis and both roger federer and rafael nadal are 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 six four games canadian. to his experience to avoid his earliest toward an exit in two years sixteen time grand slam winner eventually claiming second set seven five before winning. same type of. yeah

you know i knew it was going to be extremely difficult much for me is already played thank you of clay court tennis itself to do is really quick and it really you know is a great serve so obviously it worked well for me here and for a long time and looked like i was going to come out of it and i just hung in there got a little lucky at time served well the times and identified a really good tiebreaker 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 russia nick in straight sets six two six two why the comfortable nature of his victory the spaniard echoed concerns from novak djokovic to out the slippery courts. i always did my best to be to be ready to play in good conditions when i am playing in my day it when that time and was in in the in the tournament is now we now do so.

knowing that the conditions will be difficult so you never arrive before the no one tournament in the women's event number four seed agnes cover events guy needed just an hour and five minutes to dispatch sort of army of italy six love six one the dominant schooling twenty six the winning streak he won in miami earlier this year looking in on this form once again. the running where a new record has been set here in russia where we have been there is reaching the peak of mt albert in just three hours and forty one minutes are a mountain a constant the top off 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 walk to speak to him now 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 karna and forty two they quibble and off fifty football fields italy's markedly guess beery 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 luis i'll bet 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 brew strafe 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 berry was second to the top a minute behind the thirty five year old spinning a. fantastic four mean you know 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 serious but those who did will surely remember their missing year for it's leaving the event to become a significant stop on the sky running map because they about out of already bruce now finally international road cyclist mark victory day in style here in the russian capital the last one hundred thirty kilometers stage of the five rings of moscow right stop traffic on the usually gridlock garden ring russia's ego both of

team to show was the overall leader after four days of competition and retain that advantage on the final day planing oval victory serbia's even stevic finished second. round it off the podium in place. i'm happy with the second place because the day was stronger than me you showed that at the first hint for the bonus so i do lose because i made mistakes just because he was stronger he had fresh legs at the end but can you do what i want once. which was really important for me the cost of i go home happy. well that is all this fall for now a lot more for you in a little under two hours time joining that.

sigrid lumber tour to mccurry was able to build a new most sophisticated robot which unfortunately doesn't give a dollar amount anything tunes mission to teach music creation why it should care about humans in the world this is why you should care only dot com. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom harpur welcome to the big picture.

russia's president vladimir putin tells his american counterpart he's pulling out of the next week's g. eight summit in the u.s. just days after settling back into the country seat of power. before it's a rescue teams are looking for bodies of the victims are trying to reach the crash site of a russian next generation airliner in indonesia. and to the strong explosions rocked damascus with dozens reported dead and injured the u.n. warns the spate of violence could put its observer mission in jeopardy. it is one pm in the russian capital you're watching r t i'm reading josh leiter important has unexpectedly pulled out from the g eight summit in the u.s. state of maryland that starts next week instead he's sending.