JOSEPH STIGLITZ BACK ON CAPITALISM

JOSEPH STIGLITZ says in Time that “Capitalism may be the best economic system that man has come up with, but no one ever said it would create stability. In fact, over the past 30 years, market economies have faced more than 100 crises. That is why I and many other economists believe that government regulation and oversight are an essential part of a functioning market economy. Without them, there will continue to be frequent severe economic crises in different parts of the world. The market on its own is not enough. Government must play a role”.

He also says that “This crisis may have taught us that unfettered markets are risky. It should also have taught us that unilateralism can't work in a world of economic interdependence”.

The world dream of free trade and unilateralism in classical term may not be unfettered.