Stiglitz anticipates new world order

Professor Joseph Stiglitz opens the Credit Suisse conference by warning that the world can no longer rely on the US consumer, cautioning against weak policy responses and signalling a decline of the US dollar.

Policymakers are focusing too much on the costs of fiscal stimulus packages, rather than their benefits, said Joseph Stiglitz, Nobel laureate and former chief economist at the World Bank, on the opening morning of the Credit Suisse Asian Investment Conference in Hong Kong yesterday.

Consequently, these spending programmes may be too tepid, especially when, as in the United States, they contain too great an emphasis on tax cuts, and are neutralised by a contraction in expenditure by revenue-starved local...

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