"Something terrible has just happened," Nobel Prize-winning economist Paul Krugman says, predicting a global recession.
Nobel Prize-winning economist Paul Krugman is predicting a global recession in the wake of President-elect Donald Trump's win over Hillary Clinton in the US election.
In a short post on the New York Times today, Mr Krugman said that the international economy had little ability to absorb and counteract fallout from Donald Trump's economic policies.
"Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news," Krugman wrote.
"What makes it especially bad right now, however, is the fundamentally fragile state much of the world is still in, eight years after the great financial crisis," the prominent liberal commentator wrote.
"We are very probably looking at a global recession, with no end in sight," he wrote, "I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened."
So far, it would appear that markets agree with Krugman.
Massive losses have been recorded on American futures markets and the Australian stock market as investors fear instability and a potential trade-war under a Trump administration.
"Frankly, I find it hard to care much, even though this is my specialty," Krugman said. The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear.
"The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear," he said.
"If the question is when markets will recover, a first-pass answer is never."