Prof Joseph Stiglitz: Development and Macroeconomic Policy in a Post Neo-liberal World (7/2/2021)

Jnternational  Economic Association  (IEA) World Congress 2021

Host:       Prof Khausik Basu, ex President of IEA

Speaker:  Prof Joseph Stiglitz, 2001 Nobel Prize is known as New Keynesian economist

Topics

1.40 years of Neoliberalism’s Doctrine

2.Cornerstone of policy

3.Promise of neoliberalism

4.Disappointment of neoliberalism

5.Accounting for the failures

6.Pervasiveness of market failures / externalities

7.Pervasiveness of market power and exploitation

8.Important of rules and institution

9.Reconstructing economics

10.Macroeconomics after neoliberalism

11.Alternative approaches

12.Policy implications

13.Implications for monetary policy

14.Implications for globalization and development

15.Exciting time for economics

Notes

1.Prof Joseph Stiglitz is known as New Keynesian economist. The Keynesian theory presents the rational of structuralism as the basis of economic decisions and provides support for government involvement to maintain high levels of employment. … In contrast the Neoliberal theory  attributes the self-interest of individuals as the determinant of the level of employment.

2.The first welfare theorem says a competitive equilibrium is Pareto efficient: markets can yield efficient allocations. The second welfare theorem says that any Pareto efficient allocation can be obtained as an equilibrium provided one makes the ‘right’adjustment to income

3.The Washington Consensus is a set of ten economic policy prescriptions considered to constitute the “standard” reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the International Monetary Fund (IMF), World Bank and United States Department of the Treasury

4.An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer. … The costs and benefits can be both private—to an individual or an organization—or social, meaning it can affect society as a whole.

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