Stiglitz: Fall of Wall Street Is to Market Fundamentalism What the Fall of the Berlin Wall Was to Communism

Looks like I got 2 trillion in proof and a Nobel economist on my side.

Stiglitz interview in the Huffington Post

Gardels: What, then, is the ultimate impact of the Wall Street meltdown of market-driven globalization?

Stiglitz: The globalization agenda has been closely linked with the market fundamentalists — the ideology of free markets and financial liberalization. In this crisis, we see the most market-oriented institutions in the most market-oriented economy failing and running to the government for help. Everyone in the world will say now that this is the end of market fundamentalism.

In this sense, the fall of Wall Street is for market fundamentalism what the fall of the Berlin Wall was for communism — it tells the world that this way of economic organization turns out not to be sustainable. In the end, everyone says, that model doesn’t work. This moment is a marker that the claims of financial market liberalization were bogus.

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2 thoughts on “Stiglitz: Fall of Wall Street Is to Market Fundamentalism What the Fall of the Berlin Wall Was to Communism

  1. Stiglitz said:

    “what the fall of the Berlin Wall was for communism — it tells the world that this way of economic organization turns out not to be sustainable.”

    For all that he’s said and done, he’s still a fucking bourgeois mouthpiece.

  2. Of all the New Keynesians clearly the most tortured. Its like his exposure to the real existing political economy of capitalism traumatized him but not enough to shake the model out of his head. Consequently he keeps making interesting observations on how capitalism actually works without then making the necessary modifications to the basic ontological economic model in his head.

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