- Firing Volker after he successfully fought inflation
- Abolishing Glass-Steagall
- Imposing the non-stimulative and regressive Bush tax cuts
- Incentive structure encouraging faulty accounting
- Paulson's faulty October bail out package
And he has an 11 December article in Business Day, a South African newspaper. Stiglitz is interested in how to formulate Keynesian policy effectively.
In local news... Last March, Stiglitz wrote the New York State governor recommending that NY address its deficit by raising taxes on the rich.
Here's a characterization of Stiglitz's economic teaching:
"In his lectures, Stiglitz applied the machinery of neoclassical economics to upturn the standard results. Like a magician drawing rabbits from a hat, he could make demand curves slope up, supply curves slope down, markets in competitive equilibrium fail to clear, cross-subsidies make everyone better off, students over-educate themselves, and farmers produce the wrong quantities of goods. And then he would show how the magic reflected some very human and rational response to imperfect information. The theorem that individual rationality leads to social rationality applies to a special case, not the general case." -- Karla Hoff, in Economics for an Imperfect World: Essays in Honor of Joseph E. Stiglitz (ed. by R. Arnott, B. Greenwald, R. Kanbur, & B. Nalebuff) MIT Press, 2003 (quoted by John Lodewijks, "Review", Review of Political Economy, V. 21, N. 1, 2009)So why is Stiglitz considered a mainstream economist and Ian Steedman a non-mainstream heterodox economist?