SINGAPORE'S most eminent economics professor has an unusual suggestion for how the United States can deal with the equally unusual situation facing the world. Professor Lim Chong Yah's solution in a nutshell: Spend more money to beat the recession.

Do not rush out to make those big-ticket purchases just yet, though.Prof Lim, the Albert Winsemius Chair Professor of Economics at Nanyang Technological University (NTU), is talking about government investment - particularly the kind the US government should now consider.

'Spend more money to build up your economic capacity and your competitive ability,' he said.'This is the time for the US to have more and more capital investment in public works and projects, such as renewal of ports, highways, railways, irrigation facilities, schools and bridges.

US should build up economic capacity and competitiveness, and invest more on public works and infrastructure