Highlights: On the global economy from the WEF
DAVOS, Switzerland (Reuters) - Following are highlights on the global economy from sessions and interviews at the World Economic Forum in the Swiss resort of Davos on Wednesday.
JACOB FRANKEL, CHAIRMAN, JP MORGAN CHASE INTERNATIONAL
"We are falling to the trap of excessive interventionism, excessive protectionism. Money policy cannot do anything anymore. Interest rates are zero. Debt is increasing. This might stifle growth. Danger is, with excessive zeal to protect us all from debt crisis, governments will overly activist. Free trade is a win-win proposition."
GEORGE SOROS, BILLIONAIRE FINANCIER
"We're not out of the woods and of course increasing resistance to stimulus and debt makes a double dip, particularly in the U.S. where households still are indebted, more likely it was than let's say three months ago...
"I think actually there's plenty of room for countries like the U.S. to increase the national debt but it's of course very undesirable. However, reducing it at the cost of bringing on a slowdown will be counterproductive. It's more a question of spending of the money wisely....
"I am confident Greece will pull through although there will be some moments when there's pressure put on Greece from the European Union. The attraction of meeting the conditions are so great there is really no viable alternative."
ZHU MIN, DEPUTY GOVERNOR OF PEOPLE'S BANK OF CHINA
"Risk for sovereign debt crisis is real. It seems to me the real risk for the global economy is very weak and volatile economic growth. Currently people tend to be optimistic... Continued...