Joseph L. Stiglitz
This one is really simple. A Nobel laureate explained in a short and clear manner what is to do to overcome financial crisis. In an article in a special Newsweek edition December 2010-February 2011.
First.
“The financial crisis taught us that markets, by themselves, may be neither self-correcting nor efficient.”
In three simple steps J. E. Stiglitz shows the way out of the financial crisis that taught us that markets, by themselves, may be neither self-correcting nor efficient. Public investment spending (and not pumping cheap money into the economy) will increase GDP-and tax revenues-in both the short term and the long. And there may be a large “multiplier” effect of public investment spending.
Second.
Public investment spending (and not pumping cheap money into the economy)will increase GDP-and tax revenues-in both the short term and the long.
And third.
There may be a large “multiplier” effect of public investment spending.
Although this is the for the USA, I guess a lot of other government policies could head up in that direction.
Source: Joseph. E. Stiglitz: The way out of debt? Spend. Spend. Spend. in Newsweek, December 2010-February 2011
Tags: Business, Financial crisis, Gross domestic product, Joseph Stiglitz, Our bookshelf, R&D
