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Paul Romer: “Rising Interest Rates Risks Financial System”
By Paul Romer (original source economy)
“Last year, we interviewed Nobel Laureate in Economics, Professor Paul Romer New York University. It was for the New Year’s interview, and the article was published on January 1 in the Korea Economic Daily.
The conversation with Professor Romer did not have the “fun” the so-called reporters talked about. He continued to emphasize the importance of ‘trust’ throughout the interview. His message was that trust, which is the basis of social cooperation at the United States, in countries and at the global level, is weakening.
The long-term outlook is not good, because trust in the US economy is undermined by big IT companies, such as Google Facebook. Trump was concerned that isolationism, also under way, would weaken trust among nations and call for less cooperation. As for the Korean economy, the biggest problem was the weakening of public trust in the government.”
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