China's influence on global economy to increase: Joseph Stiglitz

NEW DELHI: Stating that China has both the incentive and the resources to continue pushing growth, US economist, Joseph Stiglitz told ET Now that the Chinese economy's share in global GDP and trade will increase in the coming years.

Stiglitz was of the opinion that even though the China's economy may not grow at a high 9-10%, the fundamental change in the global economy will work to increase Chinese influence. He also feels that the influence of the developed nations is decreasing.

Stiglitz expects most emerging markets ( EMs) to grow faster than both Europe and the US. When IMF needs money, industrialised nations have less to offer, he added.

According to Stiglitz, the QE2 has been widely criticised because of its ineffectiveness. "In a world of open financial markets, money will go to the places that offer better returns," he said.

Even though he said that it is difficult to give any outlook for the economies of India and Brazil, Stiglitz said that their growth will be stronger than the anemic one in European nations.