Best for GCC to depeg from dollar: Krugman

The worst of the global economic crisis has "probably" passed, although a quick recovery is unlikely, American Nobel laureate Paul Krugman said at the opening of the Megatrends economic conference in Abu Dhabi on Monday.

Acknowledging his lack of knowledge of nuances of the UAE economy, Krugman stated his view that the UAE, along with its Gulf Cooperation Council (GCC) neighbours stands to benefit from a long-term upward trend in oil prices.

He also opposed regional monetary policies that continue to peg local currencies to the dollar, citing the expected decline in the value of the dollar by the end of the year and larger trading volumes with European and Asian countries.