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Gordon Brown may have saved the world's financial system, says economics Nobel Prize winner

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Gordon Brown's rescue plan was hailed worldwide with Germany, France, Italy and other European governments saying they will follow suit.

But perhaps the most notable endorsement came from Paul Krugman, who won the Nobel Prize for economics on Monday.

In an article for the New York Times titled 'Gordon does Good' the Princeton scholar has lavished praise on the PM.

Here we reproduce an edited version.

Has Gordon Brown, the British Prime Minister, saved the world financial system?

OK, the question is premature - we still don't know the exact shape of the planned financial rescues in Europe or for that matter the United States, let alone whether they'll really work.

What we do know, however, is that Mr Brown and Alistair Darling, the Chancellor of the Exchequer (equivalent to our Treasury Secretary), have defined the character of the worldwide rescue effort, with other wealthy nations playing catch-up.

This is an unexpected turn of events. The British government is, after all, very much a junior partner when it comes to world economic affairs.

It's true that London is one of the world's great financial centers, but the British economy is far smaller than the U.S. economy, and the Bank of England doesn't have anything like the influence either of the Federal Reserve or of the European Central Bank.

So you don't expect to see Britain playing a leadership role.

* * * * *

More at link.

Gordon Brown was Chancellor of the Exchequer for a good reason.
Vierotchka

17 responses // Gordon Brown may have saved the world's financial system, says economics Nobel Prize winner

  •  

    It was not him who saved the world finanel system but he was the first with the konsquent plans; the saving is at least the plan of all european countries to make similar individuel rescue sytems.
    It schows: together the rest of the world can overcome a mistake caused by the USA without them.

    oldgerman
  •  

    Well we all know it wasn't Bush that saved it, even though he is claiming he did.

    One thing is certain though, a well placed Gazillion dollars can pretty much fix anything.

    TerryA
  •  

    Could this be the turning point for Gordon? His quick and decisive actions in this crisis could help turn public opinion in his favour.

    Thatcher was in trouble before the Falklands war, which she successfully used to solidify her position as PM. Labour claiming credit for the rescue has certainly unsettled the Tories.

    His speech yesterday was interesting when he seemed to compare himself to postwar leaders Churchill and Roosevelt - “taking steps to forge the reconstruction and peace that was to come”.

    Pardon
  •  

    Let us hope so.

    Marilynn_Murray
  •  

    Yes once again thank goodness for the cool calculation of the British..the world can relax for a while.After this fiasco of American laid back we are the number one superpower..scam..this may be a starting point for the reformation of America..instead of causing havoc in the world..its time to make a thorough contribution..in all departments..well done Gordon and the teams think Globally not..worldly...

    mcwally
  •  

    Where's that link V?

    rightbrain
  •  
    http://www.nytimes.com/2008/10/13/opinion/13krugman....
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    This is the link to the original New York Times article, the daily mail link seems to be down.

    phillyharper
    1 response to this
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    I hope he is right

    515dsm
  •  

    Our Gordon is OK

    However a few month ago he loaned the Bradford and Bingley some 20 odd BILLION pounds to help them out they have now paid back ELEVEN BILLION!!

    My question is did they pay back the money with or without the interest it had made?

    Who is laughing now! The bankers mafia are really clever

    themanwithadog
  •  

    Oh yeah, socialism will be much better.

    JohnA
  •  

    Who' s fault is it John?

    Marilynn_Murray
  •  

    I pay my bills, I can't speak for anyone else.

    JohnA
  •  

    wipe that smile of your face. you ain't saved shit yet.

    ahowes
  •  

    lol John, you prefer corporate cronyism eh?

    John likes welfare for the rich.

    That's right, when the government buys out banks it has to give them back to the owners with no stock or oversight!

    The "socialist" boogeyman isn't working anymore.

    If the government had to bail you out, FUCK YOU. We, the taxpayers, OWN you now.

    That's my position.

    Sadly, it wasn't congresses'. They kiss the feet of their corporate masters, pay for their 5 million dollar vacation in the OC Hilton.

    I don't know much about Gordon and apparently he's been a prick.

    But he had the right idea here.

    Saladin
  •  

    I just think that people should pay their own bills. I do, why can't everyone else? Why am I bailing anything out, I have no debt, I don't need a bailout. If you can't afford it, don't buy it. How the hell hard is that to figure out?

    JohnA
  •  

    is it truly saved??

    Can i throw a cat in a lake and claim to save it from drowning when I place it in a boat with no paddles??? How is the cat going to get back to land?? The true effects of the "bailout" are yet to be seen. Long term inflation can be more detrimental than a major depression.

    regjoeschmo

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