Let Markets Be Markets

Joseph Stiglitz is a Nobel-prize winning economist. He is also a former Chief Economist of the World Bank. He resigned / was forced out in 2000 because of his criticism of IMF and US Treasury policies in forcing “free-market fundamentalism” onto developing and emerging market countries in the 1990’s. He has been a sharp critic throughout his career of the free-markets-are-always-right view that has often characterized the “Chicago boys”. Indeed, the theoretical work for which he was awarded the Nobel Memorial Prize demonstrates how markets will not achieve desirably outcomes without some forms of government regulations and institutional restrictions.

In this short video (8 min) he talks about how U.S. financial markets aren’t really “free markets” – they don’t meet the conditions for a functioning “market”.

One thought on “Let Markets Be Markets

  1. The “markets” could act as regulator, IF the currency was “market-based” rather than centrally issued. But:

    ** who are the central currency issuers? The central banks!
    ** who controls the controllers? Self-regulation, i.e. nobody.
    ** LETS and professional barter companies teach us how to “issue currency” by accounting for products exchanged or services rendered. That’s a reality- and market-based currency and not the farcical “out of thin air” invention that we are currently enduring.

    More on http://publicdebts.org.uk and http://moneyasdebt.wordpress.com

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