Joseph Stiglitz on Macroeconomics in Crisis

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

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

Thanks

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?

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.

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

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.

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

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

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.

Comments are turned off. Lol.

I envy his students at Columbia.

But the population's not declining.

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.

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

"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.

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

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. YOUTUBE: “Qué podemos hacer? Una SOLUCIÓN global en 14 minutos”. Prof.Dr.Dr.Wolfgang Berger (Berlín).

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 https://www.mediafire.com/file/tvpyra7ojgvocbc/الاقتصاد+الكلي+الاسلامي.pdf/file لمشاهدة لقاء مع المؤلف حول موضوع الكتاب يرجى زيارة الرابط التالي https://youtu.be/GnFWgDlzWt0 ارجوا ان يتم وضعه كمادة تدرس في المنهج الدراسي لطلبة الاقتصاد في الفصل القادم وشكرا.. .. ... .. .. .. . ....... ... .. . .... . ..... ...

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.