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Paul Krugman: US is 'horrified onlooker' to euro crisis

19 June 2012 Last updated at 00:56 BST

World leaders have gathered in Los Cabos, Mexico for a G20 summit, which correspondents say is expected to feature discussions about the crisis in the eurozone.

But Nobel Prize-winning economist Paul Krugman says the US is limited in what it can do to intervene in the eurozone crisis.

Speaking to the BBC's Jane O'Brien, Mr Krugman, a New York Times columnist, described Europe as a great economic power that the US cannot simply order about.

Washington is little more than a "horrified onlooker" as events unfold across the Atlantic, he said.