Results for “Joseph E. Stiglitz”

In the standard putty-clay model, firms, able to get access to long-term capital at a very low interest rate, will invest in highly capital-intensive technologies, because wages have not fallen as much as the cost of capital. But this means that, at any given level of demand for output, employment will actually be reduced.

Nobel Prize-Winning Economist & Critic of Globalization

There are many in Europe and America who believe that our current troubles arise from excess debt, at both the household and national level. Those focusing on debt at the national level have warned that debt financed spending will in the long run be counterproductive.

Nobel Prize-Winning Economist & Critic of Globalization

While the crisis made the problems of the euro-structure clear, they were present long before. Indeed, the euro helped create the crisis: for the markets seemed to have vastly overestimated the extent to which the single market/single currency had reduced risk (another example of market irrationality), leading to excessive lending to the afflicted countries.

Nobel Prize-Winning Economist & Critic of Globalization

The representative agent model (and its descendants) imposed a straightjacket that made it difficult to think clearly about what was going on [in the economy]… To me [Stiglitz], the strangest aspect of modern macroeconomics was that the central banks were using a model in which banks and financial markets played no role.

Nobel Prize-Winning Economist & Critic of Globalization

Loose monetary policy today may be setting up the conditions for a jobless recovery in the future. Even today, the outlines of such a situation are already visible. The knowledge that weaker demand for labour lies ahead affects consumption demand directly and indirectly, as it puts further downward pressure on wages.

Nobel Prize-Winning Economist & Critic of Globalization

There are many in Europe and America who believe that our current troubles arise from excess debt, at both the household and national level. Those focusing on debt at the national level have warned that debt financed spending will in the long run be counterproductive.

Nobel Prize-Winning Economist & Critic of Globalization

While the crisis made the problems of the euro-structure clear, they were present long before. Indeed, the euro helped create the crisis: for the markets seemed to have vastly overestimated the extent to which the single market/single currency had reduced risk (another example of market irrationality), leading to excessive lending to the afflicted countries.

Nobel Prize-Winning Economist & Critic of Globalization

The representative agent model (and its descendants) imposed a straightjacket that made it difficult to think clearly about what was going on [in the economy]… To me [Stiglitz], the strangest aspect of modern macroeconomics was that the central banks were using a model in which banks and financial markets played no role.

Nobel Prize-Winning Economist & Critic of Globalization