Stiglitz: A Contagion of Bad Ideas
Another quick hit from the side of the road:
A Contagion of Bad Ideas, by Joseph E. Stiglitz, Commentary, Project Syndicate: ...There has been much concern about financial contagion between Europe and America. After all, America’s financial mismanagement played an important role in triggering Europe’s problems, and financial turmoil in Europe would not be good for the US – especially given the fragility of the US banking system and the continuing role it plays in non-transparent CDSs.
But the real problem stems from another form of contagion: bad ideas move easily across borders, and misguided economic notions on both sides of the Atlantic have been reinforcing each other. The same will be true of the stagnation that those policies bring. [...read more...]
Posted by Mark Thoma on Friday, August 5, 2011 at 11:43 AM in Economics |
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