The way out of financial crisis in three simple steps by Joseph L. Stiglitz

Joseph L. Stiglitz

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

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