-- Nobel Prize-winning economist Joseph Stiglitz said the Federal Reserve’s policy of cutting interest rates to a record low has had repercussions worldwide, including currency misalignments and the risk of asset price bubbles.
“Fed policy was supposed to reignite the American economy, but it’s not doing that,” Stiglitz, a professor at Columbia University in New York since 2001, said in a Bloomberg Television interview today. “The flood of liquidity is going abroad and causing problems all over the world.”--
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Comment: It is amazing how guys like Stiglitz change their position according to where from the wind blows. Wasn't he one of the old Econ 101 Keynesian gang only a short time ago? Now, after the child has fallen into the well, he cries that you'd better take care. I see no use in economists like that. Yet what I see is how he and Krugman systematically disqualify the so-called "Nobel"-prize in economics, which has been a fake from the beginning and forms part of the conspiracy to heap prestige upon economics as a "science", when in fact it is all about getting highly-paid in government and international organization which became urgent for the economics professionals after business had learnt in the 1960s that advice and forecasting by economists do more harm than good and had them all fired. After government was saturated by the early 1980s, the economics professionals discovered finance where they had there feast until recently. Please note that the economics learnt and practiced by the economics professional has little to do with originary economics that kind of economics which truly is scientific and which was abandoned in the late 1930s and early 1940s not so much because of the depression but mainly because government hired economists for the management of the war economy.
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