AUDIO-US taking big steps to fight against credit crisis
Jose Luis Machinea, head of the U.N. Latin American Economic Comission (ECLAC), is confident the US won’t suffer a profund economic crisis from the credit crunch.
Recent measures taken by the U.S. Federal Reserve to ensure bank liquidity and lower interest rates show the government has learned from a previous comparable crisis, the Great Depression, Machinea says.
Machinea is one of the speakers at the Reuters Latin American Investment Summit.
“The enormous difference with the 30s, is that everybody knows what we have to do and what not to do. I agree with those people who say this crisis is structurally the deepest since the Great Depression. But what you have to keep in mind is the reaction from the monetary authorities, which have implemented the biggest monetary and fiscal policies in history”.