Joseph Stiglitz on Macroeconomics in Crisis

Presentation by Professor Joseph Stiglitz at CERGE-EI on October 11, 2011, titled "Restoring Growth and Stability in a World of Crisis and Contagion: Lessons from Economic Theory and History".

[@peapod8]

Keynes never imagined the ditch we're in now. And his remedies are woefully inadequate.

[@michalchik]

There is sooo much they could learn from a serious study of ecology, evolution and population genetics. I have been saying that for years.

[@chetanasin9150]

Thanks

[@natanulsiref]

The only way I can think of the mobility trap becoming a problem during this transition is when there is a big difference in the development of a nations cities - some growing (service centers), some declining (old industrial centers). Is this really a relevant factor?

[@MikeNewland]

Well you'd have to go a long way to find a better overall picture of macro and economic history since the 1930s! Of course one can argue about the size of multipliers and the effective of government but the substance about which to argue was all in there. Everyone should see this masterful video. Only 4100 views is a waste.

[@natanulsiref]

I've got a question concerning the mobility trap during transitions caused by the fanancial problems of people who loose their jobs or a significant part of their income. While I see the relevance of that for a society in transition from an agricultural to an industrial economy I don't really get why the mobility trap is a real problem for the tranistion to the service sector. Both industry and services usually take place in and around cities.

[@natanulsiref]

@pasholnaxui10 ok, that makes sense. i understood mobility as something strictly spatial here. thnx

[@pajeetsingh]

Comments are turned off. Lol.

[@sojutime]

I envy his students at Columbia.

[@Pyrrhic.]

It is important to have social safety nets and for government to improve income distribution. Even Hayek, an Austrian economist believe government should have some form of safety net. You also forget the person who once worked paid unemployment benefits, in return for unemployment benefit if he loses his job. I know many people on unemployment benefits and they do not like it. It is not a good position where you cannot support your family.

[@AlwaysHopeful87]

For a contrasting view allow me to suggest the book: The Forgotten Man: A New History of the Great Depression.

[@cbraat27]

But the population's not declining.

[@peapod8]

Fractional reserve banking. Google it along with the name of Bill Still.

[@peapod8]

He's missing the elephant in the room, that U.S. corporations offshored their labor needs. With that, much of our economy was offshored. When U.S. consumer capacity is simulated through debt, other economies get stimulated, not that of the U.S.

[@cbraat27]

Right, and that's why you were in the Clinton administration and lecture at Harvard: because you are light years ahead of him.

[@poruncambioeconomico]

La situación económica y social no va nada bien. También lo empiezan a vivir cada vez más personas en Alemania, Suiza y Austria. ¿Qué podemos hacer? Nosotros hemos decidido traducir del alemán otras alternativas que van más allá de los eternos esquemas de la derecha (¿hoy en día liberales?) y de la izquierda (+ sindicatos), y de las que, además, no se habla en España. KZbin: “Qué podemos hacer? Una SOLUCIÓN global en 14 minutos”. Prof.Dr.Dr.Wolfgang Berger (Berlín).

[@allgoo19]

"What happens when unemployment spikes world wide to a level not scene before?" == Last one happened was created under conservative policy(libertarian policy) and saved by the liberal economic policy. Google, "Great Depression Wiki" I thought everyone already knew this.

[@poosta7]

Economists should study ecology. In any ecosystem where one species can gather all available energy (food) or resources (light, water) then complex food chains collapse. It is the same when disposable income is removed from an economy by job loss and wage cuts and directed to 1% of the people who take the income and store it tax free in offshore locations.

[@CPS123456]

Every 6 months he changes his predictions (depending on how he plays the market). Eventually he will get it.

[@cbraat27]

You said Krugman and Stiglitz were foolish to call services a growth sector because the population is declining or stagnating.

[@peapod8]

Derivative time bomb over a $quadrillion. Hello.

[@saraahmad5236]

Economics suffers badly from the fact that it is a science that lacks the protection from the prestige gained from aging, as is the case with physics which results from repeating experimentation every time which emphises the foundations of that science in different, varied, and surprising ways. And all reinforce that science. The author Walid Ahmed Kamal Al-Hababi, in his book "The Economic Risk Theory" (the Islamic Macroeconomic System), deals with achieving maximum benefit, detailing the new economic system, which is called the "risk" system in which wealth is distributed to everyone, as it is a stable and more efficient system than the system of free market. In his book "The Theory of Economic Risk" (The Islamic Macroeconomic System), the author believes that the basic idea of ​​this book is to clarify the idea of ​​how to use the principle of time preference in imposing taxes, in order to motivate everyone to invest and raise productivity through tax. He also touched on the state's duties regarding its implementation and the extent of its participation in the market accurately. The author spoke of the zakat banks as the state budget, while the state budget remains the most controversial point among policy makers in countries. At the same time, the writer believes that while economic writings are scarce from a total point of view, there is no writer who spoke about a holistic Islamic economy as a previous system; So this is the only writing, up to the moment. You cannot change a system by fighting the existing truth, as Muslim economists always do, but to change something, you must create a model that makes the current system an outdated system. furthermore If we know that this system achieves the highest rate of spending in a country without need for other economic resources - without taxes or anything else - thus we can see that we are facing unique writings. Whereas, it lays out clear features for the Islamic economy that distinguish it completely from the socialist and capitalist economies, and not a fabrication to be similar to either of them. And he affirms that with this system, other systems will not be able to catch up with our economic progress, no matter what efforts are made, except to implement it. On the other hand, he believes that we will not be able to catch up with the West economically with the current systems, no matter what we try. Finally, the author asserts, that economics is the only thing that clarifies the purpose of Islamic customs and rituals apart from their devotional meaning in human life. So that it can be proven without doubt that it is indispensable for a person to perform it such as Hajj, Zakat, prayer ... etc. He also confirms that all of this is found in the book (The Theory of Economic Risk) in this book issued by the House of “Yemeni Books” for printing, publishing and distribution within 305 pages and distributed in three main chapters, that this Islamic macroeconomic system is; He is the one who will bring us the maximum benefit يعاني علمُ الاقتصادِ بشدةٍ من أنه العلمُ الذي يفتقدُ إلى الحمايةِ التي تُؤمنها الهَيبة المكتسبة من تقادم العمر، كما هو الحال مع علمِ الفيزياءِ الناتج عن ترسيخ التجربة المتكررة في كلِ مرة للأسس بطرقٍ مختلفةٍ، ومتنوعةٍ، و مدهشةٍ. وجميعها تعززُ مكانة ذلك العلمِ. وتناول المؤلف وليد أحمد كمال الحبابي، في كتابه" نظرية المخاطرة الاقتصادية" (النظام الاقتصادي الكلي الإسلامي) تحقيق المنفعة القصوى، إيراد تفاصيل النظام الاقتصادي الجديد ، والذي يسمى نظام "المخاطرة" والذي تتوزع فيه الثروة على الجميع ، باعتباره نظاماً مستقراً أكثر كفاءة من نظام السوق الحر. ويرى المؤلف في كتابه" نظرية المخاطرة الاقتصادية" (النظام الاقتصادي الكلي الإسلامي) تحقيق المنفعة القصوى، أن الفكرة الأساسية لهذا الكتاب تكمنْ في توضيح فكرة كيفية استخدام مبدأ التفضيل الزمني في فرض الضريبة، وذلك لتحفيز الجميع على الاستثمار ورفع الانتاجية من خلال الضريبة. كما تطرق الى واجبات الدولة بخصوص تطبيقه ومدى اشتراكها في الأسواق بدقه . وتحدث المؤلف عن أن مصارف الزكاة تعتبر هي موازنة الدولة، فيما تظل موازنة الدولة هي النقطة الاكثر جدلا بين صانعي السياسات في البلدان. وفي الوقت نفسه يرى الكاتب أنه فيما تندر الكتاباتُ الاقتصاديةِ من ناحيةٍ كلية، ولا يوجد كاتبٌ تحدث عن اقتصادٍ إسلامي كلي كنظام سابقًا؛ وبالتالي فهذه هي الكتابة الوحيدة، حتى اللحظة. ويضيف لا يمكنك تغيير نظام بمحاربة الحقيقة القائمة، كما يفعل ذلك الاقتصاديون المسلمون دوما ، ولكن لتغيير شيءٍ، يجب عليك وضع نموذج يجعل النظام الحالي نظام عفا عليه الزمان؛ فإذا علمنا أن هذا النظام يحقق أعلا معدل إنفاق في دولة بلا موارد اقتصادية_ دون اللجوء إلى ضرائبٍ، أو غيرها_ فحينها يمكن أن نرى أننا أمام كتاباتٍ فريدةٍ من نوعها؛ حيثُ أنها تضع للاقتصاد الإسلامي ملامحًا واضحةً تميزهُ تمامًا عن الاقتصادين الاشتراكين و الرأسمالين، وليس تلفيقًا ليشابه أحدهما. ويؤكد أنه بهذا النظام لنْ تتمكن الأنظمةُ الأخرى من اللحاقِ بتقدمنا الاقتصادي مهما بذلت من جهود سوى تطبيقه. وعلى الجانب الآخر يرى أننا لن نتمكن نحنُ من اللحاق بركب الغرب اقتصاديًا بالنظم الحالية مهما حاولنا. وأخيرًا يجزم المؤلف، إن الاقتصاد هو الشيء الوحيد الذي يوضح الغرض من العاداتِ والعباداتِ الإسلامية بعيدًا عن معناها التعبدي في حياة الإنسان؛ بحيث يثبت بما لا يدع للشكِ أنه لاغنى للإنسان عن القيام بها من حج، وزكاة، وصلاة... الخ. كما يؤكد أن كل ذلك نجدهُ في كتاب ( نظريةُ المخاطرةِ الاقتصاديةِ) في هذا الكتاب الصادر عن دار "الكتب اليمنية" للطباعة والنشر والتوزيع ضمن 305 صفحة وموزع على ثلاثة أبواب رئيسية ، أن هذا النظام الاقتصادي الكلي الإسلامي؛ هو الذي سيحققُ لنا المنفعة القصوى.. .. ,,لتنزيل نسخة مجانية من الكتاب www.mediafire.com/file/tvpyra7ojgvocbc/الاقتصاد+الكلي+الاسلامي.pdf/file لمشاهدة لقاء مع المؤلف حول موضوع الكتاب يرجى زيارة الرابط التالي kzbin.info/www/bejne/fZ-piJp6od-KqpI ارجوا ان يتم وضعه كمادة تدرس في المنهج الدراسي لطلبة الاقتصاد في الفصل القادم وشكرا.. .. ... .. .. .. . ....... ... .. . .... . ..... ...

[@pooltrader]

A very important point that Stiglitz fails to notice in the structural transformation from natural economy to artificial economy, yes we produce more food now due to mechanization of agriculture, however he doesn't realize that food in a natural economy is 10-1, in artificial economy it's 1-1, it's produced upon demand! Very bad for humanity because once the global economy collapses humanity is removed from food. Think about what that means.

[@cbraat27]

No, that's simply not true. The population of the world is growing and becoming more globalised. Therefore, services is a growth market by your logic.

[@pooltrader]

yea I know it's to much for you to handle! Told you I was light years ahead.

[@ransaurus]

I'm sorry to say that I have absolutely no idea what you're trying to say. Food has always been produced upon demand. I have no idea what you mean by 'humanity is removed from food'. It seems like you want to participate in an intellectual discussion, but you just don't have the ammo. If you're interested, which I assume you are since you took the time to comment on this video, I would suggest reading some basic macroeconomic texts. Try Macroeconomics by Bernanke and Abel.

[@ransaurus]

And really, maybe the reason that you're so confused by this lecture is that you simply don't understand YET. So again, I suggest that you go educate yourself thoroughly to once again return to this discussion and redeem yourself.

[@ransaurus]

If you wish to continue gathering food from nature, by all means. I'm not saying you're wrong. You're not. It's a nice little fact you came up with. But making such a comment in this environment would be like me saying 'homosapians didn't have cars, and now making cars is an industrialized process, think about that'. I guess I should clear this up before you go and start spreading fear amongst unsuspecting victims, no food and industry will not disappear if the global economy collapses.

[@ransaurus]

I will not ask for your credentials. I do not need to. But, I'm sorry. When I entered my comment I thought that u would be so rational as to have a legitimate point, but now I just can't give you the benefit of the doubt anymore. Are you suggesting by the nature of your comment that u wish food to be reserved to growing in nature only and not under our control? The problem is, that point is entirely irrelevant to this video and would have been irrelevant to economics starting quite a while ago.

[@allgoo19]

"If you don't work you don't eat." "I am a Yankee Liberal from NYC." == What makes you a liberal? Do you mean neo-liberal?

[@pooltrader]

Boy does Stiglitzs have it wrong!!!!!!!!!!!!!!!!! Its not a structural transformation from manufacturing to services,lollllllllllllllllllllllll, he is 30 years late for that one, It's a structural transformation from services to unemployment the last category of simian progression in the artificial economy.

[@pooltrader]

with all due respect to Stiglitz as a fellow American, he is far from a brilliant economist, all you have to due is watch this unorganized confusing lecture. It reminds of an undergraduate trying to fill up his allotted time. For your info cbraat27 I am a Yankee Liberal from NYC. In terms of economics I am light years ahead of Stiglitz. If you don't understand the ecological consequences of economics you cannot possible know what you are talking about. Thank you for your time and attention.

[@pooltrader]

Exponential population growth stopped in 1963, due to urbanization! The global population is still increasing but no longer at an exponential rate, and the global trend is for zero population growth in the near future, the demographers estimate around 2050 and they keep adjusting the year sooner. This is bad for growth. To bad for us we don't have to wait for this magic number. Automation, market saturation coupled with our demographic situation is untenable.

[@pooltrader]

I say this with all due respect to Joe, I know he is a good human being! I am just attacking his scholarship, it is terribly flawed. He along with Alan are clueless. The last time humanity found its self in this problem the artificial economy was functioning under a manufacturing regime, not so this time around. Paul is waiting for some new technology to create growth, some new discovery of gold, oil anything. He will wait right thru entropy. It's not happening.

[@gordonbradley199]

A micro economist is wrong about one thing. A macro economist is wrong about everything !

[@soapbxprod]

Incredible... the guy who presided over the CEA under Clinton when NAFTA and the Financial Services Modernization Act were signed into law, who was fired from the World Bank after the WTO riots in Seattle... now he claims that the "standard models" failed to predict the financial crisis... he's like a British car maker who keeps trying to fix the same poorly designed carburetor with more fiddly bits... and he completely misses the point. The banks were allowed to leverage 60 to 1- and he's one of the "experts" who allowed that to happen. Ugh. I wish that Milton Friedman were alive to contest his assertions...

[@pooltrader]

There is nothing these economist can say or do now! Global economic collapse is a certainty now, almost 7 billion people are going to participate in this extraordinary event.

[@pooltrader]

Japan, Germany, France, England, Spain, Italy, Greece, Australia, China everybody is either at replacement rate or trending below it! These countries above are below along with many more to many to list. The whole European union as a whole has a fertility rate of 1.58 well below replacement. The united states is at replacement levels only because of illegal immigration.

[@pooltrader]

Ok if you say so, just ask Joe what will the new sector humanity will work in is? The answer better not be information technology, this is part of services, no way around it. Joe's whole economic model rest on cyclicality, this is wrong! He is totally clueless.

[@pooltrader]

What achievements? They are always wrong? from the video above he can't even explain where we are at? We are moving from services to unemployment, not from manufacturing to services, this happened 30 years ago. Go right ahead with your Argumentum Ad Hominem, you are just a cheerleader.

[@pooltrader]

Not an ad hominem attacks, it's a fact your a cheerleader, you have not stated anything rational supporting anything being said.

[@pooltrader]

so sad, I am sure Joe is a good man, but he is clueless.

[@lucia7546]

Jews will never tell you how they do it!