Stiglitz: The euro may not survive

Joseph Stiglitz, former respected chief economist of the World Bank and Nobel Prize winner, warns the future of the euro is "looking bleak".

Stiglitz adds the fragile European economic recovery could be irreparably damaged by a "wave of austerity" sweeping the continent and predicts short-term market speculators could start putting pressure on Spain. The former adviser to US President Bill Clinton, Stiglitz makes the predictions in an updated edition of his book ‘Freefall', which was extracted in the Sunday Telegraph. "The worry is that there is a wave of austerity building throughout Europe and even hitting America's shores," Stiglitz says. "As so many countries cut back on spending prematurely, global aggregate demand...