The Global Keynesianism of Stiglitz

Stiglitz can, perhaps, be described as a global-Keynesian. He is critical of global neoliberalism and his analysis and proposals have Keynesian elements and are of a global, rather than national, scope. Here are some examples.

REFERENCES - GG = Joseph E. Stiglitz, "Global Greenbacks", The Economic Times, 22 march 2002 - HT = "Asia should pool forces to stand up to US, says noted economist", Hindustantimes.com, April 22, 2002 - SR = Joseph E. Stiglitz, "A Fair Deal for the World" (Review of Soros book), The New York Review of Books,May 23, 2002) - SG = Susan George, "Clusters of Crisis and a Planetary Contract", paper, Budapest, 18 October 2001 (see Susan George web site)

QUOTES

(a) "We have an alliance against terrorism. We should also have an alliance for more global justice and a better global environment." (SR)

(b) About Soros: "Soros makes a convincing case for the need for larger expenditures on global public goods, including health and economic development. . . .My only criticism is that it does not go far enough" (SR)

(c) Stiglitz advocates expansion of global demand by issuing "global greenbacks" - a "new form of global money akin to the IMF's Special Drawing Rights (SDRs)" - magnitude discussed = "roughly $1.6 trillion world-wide" (GG)

(d) "Asian economies should pool their huge foreign exchange reserves as a step toward a reshaped international monetary system that would be less of a tool of US interests, Nobel Prize-winning economist Joseph Stiglitz said on Monday.. . . Stiglitz said current global monetary arrangements had bred damaging currency volatility that required countries to hold substantial assets in reserve in case of shocks.. . . this arrangement exports deflation because it ties up money that would otherwise be spent or invested more profitably . . . Arguing that developing countries shoulder a disproportionate burden of an inequitable system, Stiglitz said Asia would be a good place to start building an alternative model because its central banks are already sitting on huge stockpiles of reserves." (HT)

The last quote suggests that global Keynesianism could be built via regional Keynesianisms. Regional Keynesianism is somewhat similar to (global socialist) Samir Amin's concept of building a "polycentric" world (i.e., a world with strong regions). Another step in this direction is the recently created African Union.

The Stiglitz variety of global Keynesianism is also compatible with Susan George's view, namely:

"A new, updated and globalised Keynesian strategy is now called for, not just in the United States or in Europe but throughout the world. We need vast injections of crisis-directed resources into the global economy. They must be linked to environmental renewal, poverty eradication and democratic governance." (SG)

Gernot Kohler

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