Greenspan: UK Would Be Hard Hit Than U.S. By Current Recession - BBC

Sponsored Links

UK would be harder hit than the U.S. by the current recession and collapse in world trade, former Federal Reserve chief Alan Greenspan told the BBC News in an interview.

"Obviously we've both suffered very considerably but ... Britain is more globally oriented as an economy and the dramatic decline in exports globally and trade generally following the collapse of Lehman Brothers had dramatic effects in the financial system of Britain," Greenspan said.

Referring to the UK, Greenspan said, "It's going to take a long while for you to work your way through this."

He warned that the world will suffer another financial crisis, but it would be different from the current, though they have one fundamental source.

In order to prevent the situation arising again, financiers and governments should look to clamp down on fraud and increase capital requirements for banks, the former central banker said.

According to excerpts of the interview published in the BBC Web site on Tuesday, Greenspan warned that the path to recovery should steer clear of protectionism as applying strict regulations could hamper recent developments that have opened up global trade.

Moreover, he said the current economic crisis was a "once in a century type of event", and one that he did not expect to witness.

UK would be harder hit than the U.S. by the current recession and collapse in world trade, former Federal Reserve chief Alan Greenspan told the BBC News in an interview. (Market News Provided by RTTNews)