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Over the Past Decade Joseph Stiglitz Has Acquired a Considerable Reputa
CORRECTING STIGLITZ: FROM INFORMATION TO POWER IN THE WORLD OF DEVELOPMENT BEN FINE AND ELISA VAN WAEYENBERGE ver the past decade Joseph Stiglitz has acquired a considerable reputa- Otion for radicalism. It began with his launching of the post Washington Consensus after his appointment as Chief Economist at the World Bank, and was then reinforced by his subsequent ‘resignation’ from that post in 2000, followed by his extensive critique of the IMF, above all in his best-selling book, Globalization and Its Discontents.1 But on closer examination Stiglitz’s trajectory reveals a number of telling truths, not so much about himself, as about the World Bank’s policies and ideology, the influence on the Bank of the US government (most sharply revealed in the recent appointment of Wolfowitz as President of the Bank), and the dismal science of the Bank’s economics – from which Stiglitz has in some respects at most marginally departed. In reality the Bank has responded to its crisis of legitimacy in the early 1990s by de-emphasising neo-liberal theory in principle whilst supporting private capital ever more strongly in practice. Ideologically, this has been marked by a number of shifts in World Bank parlance, from ‘good governance’ to ‘poverty alleviation’, and especially its most recent claim to be first and foremost a ‘knowledge bank’. Tellingly, these elements are in fact entirely consistent with Stiglitz’s scholarly work and were, indeed, strongly endorsed by him during his time at the Bank. Only after he was forced out of the Bank was he forced to accept, however partially, unconsciously and implicitly, that the world – including the Bank – has to be understood in ways that depart from the scholarly tradition he has sought to promote. -
On Sticky Prices: Academic Theories Meet the Real World
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Monetary Policy Volume Author/Editor: N. Gregory Mankiw, ed. Volume Publisher: The University of Chicago Press Volume ISBN: 0-226-50308-9 Volume URL: http://www.nber.org/books/greg94-1 Conference Date: January 21-24, 1993 Publication Date: January 1994 Chapter Title: On Sticky Prices: Academic Theories Meet the Real World Chapter Author: Alan S. Blinder Chapter URL: http://www.nber.org/chapters/c8331 Chapter pages in book: (p. 117 - 154) 4 On Sticky Prices: Academic Theories Meet the Real World Alan S. Blinder Any theory of how nominal money affects the real economy must face up to the following conundrum: Demand or supply functions derived-whether precisely or heuristically-from basic micro principles have money, M,as an argument only in ratio to the general price level. Hence, if monetary policy is to have real effects, there must be some reason why changes in M are not followed promptly by equiproportionate changes in I.! This is the sense in which some kind of “price stickiness” is essential to virtually any story of how monetary policy works.’ Keynes (1936) offered one of the first intellectually coherent (or was it?) explanations for price stickiness by positing that money wages are sticky, and perhaps even rigid-at least in the downward direction. In that case, what Keynes called “the money supply in wage units,” M/W, moves in the same direction as nominal money, thereby stimulating the economy. In the basic Keynesian model,2 prices are not sticky relative to wages. -
Ten Nobel Laureates Say the Bush
Hundreds of economists across the nation agree. Henry Aaron, The Brookings Institution; Katharine Abraham, University of Maryland; Frank Ackerman, Global Development and Environment Institute; William James Adams, University of Michigan; Earl W. Adams, Allegheny College; Irma Adelman, University of California – Berkeley; Moshe Adler, Fiscal Policy Institute; Behrooz Afraslabi, Allegheny College; Randy Albelda, University of Massachusetts – Boston; Polly R. Allen, University of Connecticut; Gar Alperovitz, University of Maryland; Alice H. Amsden, Massachusetts Institute of Technology; Robert M. Anderson, University of California; Ralph Andreano, University of Wisconsin; Laura M. Argys, University of Colorado – Denver; Robert K. Arnold, Center for Continuing Study of the California Economy; David Arsen, Michigan State University; Michael Ash, University of Massachusetts – Amherst; Alice Audie-Figueroa, International Union, UAW; Robert L. Axtell, The Brookings Institution; M.V. Lee Badgett, University of Massachusetts – Amherst; Ron Baiman, University of Illinois – Chicago; Dean Baker, Center for Economic and Policy Research; Drucilla K. Barker, Hollins University; David Barkin, Universidad Autonoma Metropolitana – Unidad Xochimilco; William A. Barnett, University of Kansas and Washington University; Timothy J. Bartik, Upjohn Institute; Bradley W. Bateman, Grinnell College; Francis M. Bator, Harvard University Kennedy School of Government; Sandy Baum, Skidmore College; William J. Baumol, New York University; Randolph T. Beard, Auburn University; Michael Behr; Michael H. Belzer, Wayne State University; Arthur Benavie, University of North Carolina – Chapel Hill; Peter Berg, Michigan State University; Alexandra Bernasek, Colorado State University; Michael A. Bernstein, University of California – San Diego; Jared Bernstein, Economic Policy Institute; Rari Bhandari, University of California – Berkeley; Melissa Binder, University of New Mexico; Peter Birckmayer, SUNY – Empire State College; L. -
Introduction of Joseph Stiglitz Jason Furman Chairman, Council Of
Introduction of Joseph Stiglitz Jason Furman Chairman, Council of Economic Advisers Sixth Annual Moynihan Prize Award Ceremony American Academy of Political and Social Science Washington, D.C. May 8, 2014 As prepared for delivery I am honored to be introducing my friend Joe Stiglitz as he accepts this acknowledgement of the enormous impact his work has had on public policy and the broader public dialogue. Since I expect that Joe’s speech will be critical of inequality, I want to point out one area where the limited degree of inequality is truly an injustice. Maybe not the world’s largest injustice, but an injustice nonetheless. I am talking about the awarding of the Nobel Prize for Economic Sciences. And the injustice is exemplified by the fact that Joe only has one more Nobel Prize than I do. If the Nobel Prize was awarded on merit Joe would have won more of them, including for his contributions to public finance, macroeconomics and other areas. In fact, we are lucky that Joe has conducted his research so tenaciously in the face of what is de facto a 50 to 75 percent tax rate on the prize- winning ideas he generates. Frequently when someone turns up what seems like a new idea in economics, it turns out that Joe had already explored the terrain decades before. For example, Joe published part of his dissertation in Econometrica, the top technical journal in economics, in 1969. The article was entitled “Distribution of Income and Wealth Among Individuals” and the abstract summarizes the topic as “Implications for the distribution of wealth and income of alternative assumptions about savings, reproduction, inheritance policies, and labor homogeneity are investigated in the context of a neoclassical growth model.” Sounds a bit like a current bestseller, doesn’t it? Reading Joe’s CV is an exercise that falls somewhere between dizzying and humbling. -
Redefining the Role of the State: Joseph Stiglitz on Building A
Redefining the Role of the State Joseph Stiglitz on building a ‘post-Washington consensus’ An interview with introduction by Brian Snowdon ‘Economic ideas—knowledge about economics—have had a profound effect on the lives of billions of people, making it absolutely essential that we do our best to try and understand the scientific basis of our theories and evidence…In practice, however, there are often large differences in the understanding of or about economic issues. The purpose of economic science is to narrow these dif- ferences by subjecting the positions and beliefs to rigorous analysis, statistical tests, and vigorous debate’. (Joseph Stiglitz, 1998a) Introduction Joseph Stiglitz is a remarkably productive economist and is internation- ally recognised as one of the world’s leading thinkers. To date, in his 35- year career as a professional economist (1966–2001), Professor Stiglitz has published well over three hundred papers in academic journals, con- ference proceedings and edited volumes. He is also the author and edi- tor of numerous books. In 1966, having completed his PhD at MIT, he embarked on an academic career during which he has taught and con- ducted research at many of the world’s most prestigious universities including MIT, Yale, Oxford, Princeton and Stanford. In 1979 he was awarded the prestigious John Bates Clark Medal from the American Economic Association, an award given to the most distinguished economist under the age of forty. From 1993–97 Professor Stiglitz was a member of the US President’s Council of Economic Advisors, becoming Chair of the CEA in June 1995. From February 1997 until his Joseph Stiglitz is currently (since July 2001) Professor of Economics, Business and International Affairs at Columbia University, New York. -
Alan Stuart Blinder February 2020
CURRICULUM VITAE Alan Stuart Blinder February 2020 Address Department of Economics and Woodrow Wilson School of Public & International Affairs 284 Julis Romo Rabinowitz Building Princeton University Princeton, NJ 08544-1021 Phone: 609-258-3358 FAX: 609-258-5398 E-mail: blinder (at) princeton (dot) edu Website : www.princeton.edu/blinder Personal Data Born: October 14, 1945, Brooklyn, New York. Marital Status: married (Madeline Blinder); two sons and four grandchildren Educational Background Ph.D., Massachusetts Institute of Technology, l97l M.Sc. (Econ.), London School of Economics, 1968 A.B., Princeton University, summa cum laude in economics, 1967. Doctor of Humane Letters (honoris causa), Bard College, 2010 Government Service Vice Chairman, Board of Governors of the Federal Reserve System, 1994-1996. Member, President's Council of Economic Advisers, 1993-1994. Deputy Assistant Director, Congressional Budget Office, 1975. Member, New Jersey Pension Review Committee, 2002-2003. Member, Panel of Economic Advisers, Congressional Budget Office, 2002-2005. Honors Bartels World Affairs Fellow, Cornell University, 2016. Selected as one of 55 “Global Thought Leaders” by the Carnegie Council, 2014. (See http://www.carnegiecouncil.org/studio/thought-leaders/index) Distinguished Fellow, American Economic Association, 2011-. Member, American Philosophical Society, 1996-. Audit Committee, 2003- Fellow, American Academy of Arts and Sciences, 1991-. John Kenneth Galbraith Fellow, American Academy of Political and Social Science, 2009-. William F. Butler Award, New York Association for Business Economics, 2013. 1 Adam Smith Award, National Association for Business Economics, 1999. Visionary Award, Council for Economic Education, 2013. Fellow, National Association for Business Economics, 2005-. Honorary Fellow, Foreign Policy Association, 2000-. Fellow, Econometric Society, 1981-. -
The Future of Economics in a Lakatos–Bourdieu Framework
Munich Personal RePEc Archive The Future of Economics in a Lakatos–Bourdieu Framework. Heise, Arne University of Hamburg 2014 Online at https://mpra.ub.uni-muenchen.de/80024/ MPRA Paper No. 80024, posted 05 Jul 2017 05:42 UTC The Future of Economics in a Lakatos-Bourdieu framework Prof. Arne Heise University of Hamburg Dep. of Socioeconomics VMP 9 D-20146 Hamburg [email protected] Abstract The global financial crisis has clearly been a matter of great consternation for the busi- ness-as-usual faction of mainstream economics. Will the World Financial Crisis turn out to be that ‘experimentum crucis’ which triggered a scientific revolution? In this paper, we seek to assess the likelihood of a paradigm shift towards heterodox approaches and a more pluralist setting in economics emerging from the academic establishment in the U.S. – that is, from the dominant center of knowledge production in the economic disci- pline. This will be done by building the analysis on a combined Lakatosian framework of ‘battle of research programmes’ and a Bourdieuian framework of ‘power struggle’ within the academic field and highlighting the likelihood of two main proponents of the mainstream elite to become the promulgator of change? Keywords: Paradigm, heterodox economics, scientific revolution JEL codes: A 11, E 11, E 12 1 1. The Keynesian Revolution and Pragmatic Pluralism – A Fruitful Competition Between Theories or a Crisis in Economics? John Maynard Keynes concludes ‘The General Theory of Employment, Interest, and Money’ (1936: 383-84) with the following, now-famous words: „At the present moment people are unusually expectant of a more funda- mental diagnosis; more particularly ready to receive it; eager to try it out, if it should be even possible. -
What Have We Learned Since October 1979? by Alan S. Blinder Princeton
What Have We Learned since October 1979? by Alan S. Blinder Princeton University CEPS Working Paper No. 105 April 2005 “What Have We Learned since October 1979?” by Alan S. Blinder Princeton University∗ My good friend Ben Bernanke is always a hard act to follow. When I drafted these remarks, I was concerned that Ben would take all the best points and cover them extremely well, leaving only some crumbs for Ben McCallum and me to pick up. But his decision to concentrate on one issue—central bank credibility—leaves me plenty to talk about. Because Ben was so young in 1979, I’d like to begin by emphasizing that Paul Volcker re-taught the world something it seemed to have forgotten at the time: that tight monetary policy can bring inflation down at substantial, but not devastating, cost. It seems strange to harbor contrary thoughts today, but back then many people believed that 10% inflation was so deeply ingrained in the U.S. economy that we might to doomed to, say, 6-10% inflation for a very long time. For example, Otto Eckstein (1981, pp. 3-4) wrote in a well-known 1981 book that “To bring the core inflation rate down significantly through fiscal and monetary policies alone would require a prolonged deep recession bordering on depression, with the average unemployment rate held above 10%.” More concretely, he estimated that it would require 10 point-years of unemployment to bring the core inflation rate down a single percentage point,1 which is about five times more than called for by the “Brookings rule of thumb.”2 In the event, the Volcker disinflation followed the Brookings rule of thumb rather well. -
Stanley Fischer
Stanley Fischer: Monetary policy - by rule, by committee, or by both? Speech by Mr Stanley Fischer, Vice Chair of the Board of Governors of the Federal Reserve System, at the 2017 US Monetary Policy Forum, sponsored by the Initiative on Global Markets at the University of Chicago Booth School of Business, New York City, 3 March 2017. * * * In recent years, reforms in the monetary policy decisionmaking process in central banks have been in the direction of an increasing number of monetary policy committees and fewer single decisionmakers – the lone governor model.1 We are only a few months away from the 20th anniversary of the introduction of the Bank of England’s Monetary Policy Committee, just a few years after the 300th birthday of the venerable Old Lady of Threadneedle Street. The Bank of Israel moved from a single policymaker to a monetary policy committee in 2010, while I was governor there; more recently, central banks in India and New Zealand have handed over monetary policy to committees. The Federal Reserve is not part of this recent shift, however. The Federal Open Market Committee (FOMC) has been responsible for monetary policy decisions in the United States since it was established by the Banking Act of 1935, two decades after the founding of the Fed itself.2 The movement toward committees reflects the advantages of committees in aggregating a wide range of information, perspectives, and models. Despite the prevalence and importance of committees in modern central banking, the role of committees in the formulation of policy -
Stiglitz's Case by Benjamin M. Friedman Globalization And
The New York Review of Books August 15, 2002 Review Globalization: Stiglitz's Case By Benjamin M. Friedman Globalization and Its Discontents by Joseph E. Stiglitz Norton, 282 pp., $24.95 1. The most pressing economic problem of our time is that so many of what we usually call "developing economies" are, in fact, not developing. It is shocking to most citizens of the industrialized Western democracies to realize that in Uganda, or Ethiopia, or Malawi, neither men nor women can expect to live even to age forty-five. Or that in Sierra Leone 28 percent of all children die before reaching their fifth birthday. Or that in India more than half of all children are malnourished. Or that in Bangladesh just half of the adult men, and fewer than one fourth of adult women, can read and write.[1] What is more troubling still, however, is to realize that many if not most of the world's poorest countries, where very low incomes and incompetent governments combine to create such appalling human tragedy, are making no progress—at least not on the economic front. Of the fifty countries where per capita incomes were lowest in 1990 (on average, just $1,450 per annum in today's US dollars, even after we allow for the huge differences in the cost of living in those countries and in the US), twenty-three had lower average incomes in 1999 than they did in 1990. And of the twenty-seven that managed to achieve at least some positive growth, the average rate of increase was only 2.7 percent per annum. -
01-09: “Macroeconomic Policy and Sustainability”
G-DAE Working Paper No. 01-09: “Macroeconomic Policy and Sustainability” GLOBAL DEVELOPMENT AND ENVIRONMENT INSTITUTE WORKING PAPER NO. 01-09 MACROECONOMIC POLICY AND SUSTAINABILITY Jonathan Harris July 2001 Tufts University Medford MA 02155, USA http://ase.tufts.edu/gdae Ó Copyright 2001 Global Development and Environment Institute, Tufts University G-DAE Working Paper No. 01-09: “Macroeconomic Policy and Sustainability” MACROECONOMIC POLICY AND SUSTAINABILITY Jonathan Harris [email protected] Abstract The trend in mainstream economic thought about macroeconomic policy has been towards minimalism. In the optimistic Keynesian phase of the 1960's, it was assumed that both fiscal and monetary policy were effective tools for macroeconomic management. But the influence of monetarist and New Classical critiques has led to a gradual erosion of theoretical support for activist government policy. First fiscal policy fell by the wayside, perceived as too slow and possibly counterproductive in its impacts. Then New Classical and rational expectations critiques suggested that even monetary policy was ineffective. Thus the role of government policy has been reduced to a cautious effort not to make things worse B in effect a return to an economics of laissez-faire. In contrast, a sustainability perspective implies that radical and proactive government policies are required to achieve economic development that is both socially just and ecologically sound. The path of laissez-faire leads to increasing intra- and international inequality as well as increasing environmental destruction. To some extent the course of market economies can be steered through the use of sound microeconomic policies. But the fundamental redirection required for sustainable development cannot be achieved without reorienting macroeconomic policy also. -
Stability with Growth : Macroeconomics, Liberalization
STABILITY WITH GROWTH THE INITATIVE FOR POLICY DIALOGUE SERIES The Initiative for Policy Dialogue (IPD) brings together the top voices in development to address some of the most pressing and controversial debates in economic policy today. The IPD book series approaches topics such as capital market liberalization, macroeconomics, environmental economics, and trade policy from a balanced perspective, presenting alternatives and analyzing their consequences on the basis of the best available research. Written in a language accessible to policymakers and civil society, this series will rekindle the debate on economic policy and facilitate a more democratic discussion of development around the world. OTHER TITLES PUBLISHED BY OXFORD UNIVERSITY PRESS IN THIS SERIES Fair Trade for All Joseph E. Stiglitz and Andrew Charlton Stability with Growth Joseph E. Stiglitz, José Antonio Ocampo, Shari Spiegel, Ricardo Ffrench-Davis, and Deepak Nayyar Economic Development and Environmental Sustainability Ramón López and Michael A. Toman Stability with Growth Macroeconomics, Liberalization, and Development Joseph E. Stiglitz, José Antonio Ocampo, Shari Spiegel, Ricardo Ffrench-Davis, and Deepak Nayyar 1 1 Great Clarendon Street, Oxford OX2 6DP Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi