Joseph Stiglitz blames fellow economist Larry Summers for inflation concerns on the COVID-19 bailout bill


Axios

Biden’s spending plan could mean a “new world,” says Nobel laureate Joseph Stiglitz

Nobel Prize-winning economists can not only support President Biden’s projected $ 4 trillion infrastructure spending plan, but also move the United States out of the low-growth, low-inflation environment that has existed for the past two decades. He says he is expecting it. Problem: The combination of Biden’s $ 1.9 trillion coronavirus rescue program and the expected buildback better program means that the United States “may be in a very good position to return to a more normal economy.” , And Professor Joseph Stiglitz of Columbia University told Axios exclusively: Get the market news for your time at Axios Markets. “We have been in an unusual environment for the past 20 years and have fallen into an imbalanced trap. Inequality means that people have no demand, and no demand do not allow us to invest, so We are in a very bad, vicious circle, and I am optimistic that this may plunge us into a new period of stronger egalitarian growth, only about 2% since 2000. The country’s long-term average was close to 4%, while the annual average was 2.1%. Economists said that lower growth rates led to higher debt, increased economic inequality, lower investment and other reversible trends. We are arguing whether it is the result of the aging of the population and natural factors. “We will heat the economy,” said Stiglitz, winner of the 2001 Nobel Economic Awards. Said. Not only do you give money to the very wealthy, but you also give money to those who actually use it. “It should generate more demand and give people the confidence to invest.” Don’t sleep. Stiglitz’s extraordinary monetary policy has enabled the market to function better. “Now we are in a new world. A clear feature is the resurgence of fiscal policy.” The path to recovery is less important for backstops and more likely to be phased out. Over time, it will return to more normal monetary policy and interest rates will return to normal. Yes, but: “This needs attention. Former World Bank Chief Economist, White House Adviser, and United Nations International Financial System Reform Commission Chairman said,” We are in a very uncertain territory. Warning. Economy. ”Axios Details: Sign up for the latest market trends at Axios Markets.Subscribe for free

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