Europe key to U.S., global economic stability, CII told
By Randy Diamond | October 4, 2012 2:51 pm
Low economic growth and low inflation should both continue in the U.S. in 2013, but a destabilization of the domestic and the global economy could occur if the European financial crisis was to worsen, economist Laura D'Andrea Tyson told the Council of Institutional Investors on Thursday.
Speaking at CII's fall meeting in Seattle, Ms. Tyson, chairwomen of the Council of Economic Advisors under President Bill Clinton and now a business professor at the University of California, Berkeley, warned that the failure of a major European financial institution or a sovereign debt failure could lead the European economic situation to deteriorate.
Ms. Tyson predicted that GDP growth will be in the 2.2% to 3.2% range in 2013.
Ms. Tyson, who currently serves as an economic adviser to the Obama campaign, said a handful of emerging countries will be growing fast in coming years, but she did not identify those countries.