Englund

  for so long following the 2008 financial crisis. Nobel-prize winning economist Joseph Stiglitz says Joseph Stiglitz MarketWatch 6 September 2024 https://www.marketwatch.com/story/nobel-prize-winning-economist-joseph-stiglitz-says-fed-should-deliver-big-rate-cut-no-matter-what-jobs-data-show-b704c694 Joseph Stiglitz https://englundmacro.blogspot.com/search/label/Stiglitz Jag tycker det är skriande uppenbart att räntan världen över är för låg och att  en större del av stimulanserna borde ske via finanspolitiken. Rolf Englund blogg 5 december 2009 https://englundmacro.blogspot.com/2014/08/skriande-uppenbart.html

 In the name of taming inflation, central banks have deliberately set themselves on a path to cause a recession – or to worsen it if it comes anyway. The Roosevelt report also dispenses with the argument that today’s inflation is due to excessive pandemic spending, and that bringing it back down requires a long period of high unemployment.  Demand-driven inflation occurs when aggregate demand exceeds potential aggregate supply. But that, for the most part, has not been happening. Instead, the pandemic gave rise to numerous sectoral supply constraints and demand shifts that – together with adjustment asymmetries – became the primary drivers of price growth. Joseph E. Stiglitz Project Syndicate 8 December 2022 https://www.project-syndicate.org/commentary/fed-interest-rate-increases-counterproductive-all-pain-no-gain-by-joseph-e-stiglitz-2022-12 If central banks increase interest rates enough to bring inflation down to 2%, they will cause a severe economic hard landing Nouriel Ro...

Underlying the current lack of resilience is the fundamental failure of neoliberalism and the policy framework it underpins.  Markets on their own are short-sighted, and the financialization of the economy has made them even more so. They do not fully account for key risks – especially those that seem distant – even when the consequences can be enormous.  Moreover, market participants know that when risks are systemic – as was the case in all the crises listed above – policymakers cannot idly stand by and watch. Joseph E. Stiglitz Project Syndicate 5 April 2022 https://www.project-syndicate.org/commentary/russia-war-covid-global-shocks-reveal-bankruptcy-of-neoliberalism-by-joseph-e-stiglitz-2022-04

The simultaneous waning of confidence in neoliberalism and in democracy is no coincidence or mere correlation.  Neoliberalism has undermined democracy for 40 years. As wages stagnated and the stock market soared, income and wealth flowed up, rather than trickling down. The reality is that, despite its name, the era of neoliberalism was far from liberal. It imposed an intellectual orthodoxy whose guardians were utterly intolerant of dissent. Joseph  Stiglitz Project Syndicate 4 November 2019 Joseph E. Stiglitz

Mr Stiglitz presents the euro story as mostly tragedy:  “It was created with the best of intentions by visionary leaders whose visions were clouded by an imperfect understanding of what a monetary union entailed.”  It is a shame that such a dispassionate tone does not permeate the earlier chapters. Mr Stiglitz is at his best when coolly analytical and at his most trying when settling scores.  Yet on the essentials, he is surely right.  Without a radical overhaul of its workings, the euro seems all but certain to fail. The Economist, 20 August 2016 About Stiglitz at IntCom American economists about the euro