By Joseph Stiglitz
- Fair Trade for All; How Trade Can Promote Development (2007)
- Mismeasuring Our Lives: Why GDP Doesn't Add Up (2010)
- Measuring What Counts; The Global Movement for Well-Being (2019)
- People, Power, and Profits; Progressive Capitalism for an Age of Discontent (2019)
- Rewriting the Rules of the European Economy: An Agenda for Growth and Shared Prosperity (2020)
A companion to his acclaimed work in Rewriting the Rules of the American Economy, Joseph E. Stiglitz lays out the economic framework for a Europe with faster growth that is more equitably shared.
Europe is in crisis. Sluggish economic growth in many countries, widespread income stagnation, and recession have led to severe political and social consequences. Social protections for citizens have been cut back. Governments offer timid responses to deep-seated problems. These economic and political failures have contributed to the rise of extremist parties on the right. Marginalized populations are being made scapegoats for Europe’s woes. But the problems of today’s Europe stem from decisions based on a blind worship of markets in too many areas of policy.
If Europe is to return to an innovative and dynamic economy—and if there is to be shared prosperity, social solidarity, and justice—then EU countries need to break with their current, destructive trajectory. This volume offers concrete strategies for renewal that would also reinvigorate the project of European integration, with fresh ideas in the areas of both macroeconomics and microeconomics, including central banking, public investment, corporate governance and competition policy, social policy, and international trade.
In Collaboration with Carter Dougherty and the Foundation for European Progressive Studies.
Anonymous on Kirkus Review wrote:
"Mr Stiglitz, a Nobel Prize winner, is a longstanding critic of the euro, as well as a leading progressive voice in the US. This book follows a similar volume attacking America’s wafer-thin social protections and endemic inequality. Yet his new book ends up exaggerating the hold that market fundamentalism has taken on Europe. [...] Europe’s low-growth challenge is a real one, as is the threat posed by populist rightwing parties seeking to capitalise on economic discontent. But Mr Stiglitz’s conclusions show a lack of sensitivity to the multi-faceted realities in individual states. That is a pity, given the urgency of the problems the continent faces."
"The Brexiteers may be wolves in sheep’s clothing, but they have a couple of points to make—e.g., the European economy is a tangled mess that defies explanation. A number of its key doctrines, writes the author, are mistaken and damaging. One is the 'austerity doctrine,' which requires governments to keep deficits below 3% of GDP, an arbitrary number that doesn’t make sense. Another is a borrowing from the U.S. that the market knows best, when, 'without strong government actions, competition will erode as firms create barriers to entry…and work hard to reduce competition through mergers and acquisitions.' Debt is, of course, a difficult issue to work around, and European economic leaders have seen it through the lens of moral hazard: 'the risk that the debt mutualization will incentivize countries to become overindebted.' That may be, but something needs to give Europe a jolt, and it won’t be borrowing from American ideas, which often yield only monopoly and inequality. Stiglitz notes, approvingly, that India has low telecom rates because there is so much competition, forcing prices down, while in places like Mexico and the U.S., rates are high because competition is scarce or nonexistent. The author offers recipes for improvement, such as shoring up the European banking union in order to 'prevent macroeconomic harms to the community' and balancing competing doctrines. Europe has fallen behind the U.S. and China in some realms of the economy because of its concern for individual privacy, which hampers the development of artificial intelligence. Most pointedly, the author encourages the EU to stick to its regard for institutional justice, fostering multilateral agreements rather than following the current U.S. administration’s 'retreat from globalization and the global rule of law,' which has benefited no country so much as China. A provocative and accessible case for making the EU stronger rather than allowing it to disintegrate."
Lecture by Stiglitz on the Book
Table of Contents of Rewriting the Rules of the European Economy
- Introduction: Europe Today and the Path Forward
- Monetary Policy: Prioritizing Employment
- Investing for an Equitable Future
- Promoting Competitive Markets: Incentives, Regulations and Participation
- Toward a Financial System that Serves Society
- Taxation to Promote Justice and Growth
- Poverty, Inequality and the Welfare State
- A European Social Security System for the 21st Century
- Labor Markets, Good Wages, and Working Conditions
- The Future of Europe in a Globalized World
About Joseph Stiglitz
Joseph E. Stiglitz is University Professor at Columbia University and Co-founder and Executive Director of the Initiative for Policy Dialogue. A winner of the Nobel Prize in Economics in 2001, he was a member of the Council of Economic Advisers from 1993-95 (under President Clinton), chief economist of the World Bank, named by Time as one of the 100 most influential individuals in the world. He is the author of many books, including the international bestseller Globalization and Its Discontents, which has been translated into 28 languages.