Stiglitz Says Raising Interest Rates Won't Fix Inflation Problem
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- čas přidán 22. 05. 2022
- Columbia University Professor Joseph Stiglitz says the problem of surging global inflation will not be resolved with interest rate hikes alone. "Raising interest rates is not gonna to solve the problem of inflation, it's not gonna create more food," Stiglitz says at the World Economic Forum's annual meeting in Davos, Switzerland on "Bloomberg Surveillance"
Best day of my life was when I stopped spending borrowed money and only what I earn from my investment... Also Destroyed my financial credit score so can't borrow money.. it's definitely a bad addiction.. kids need to learn this quickly.. Investing your money is misunderstood by many as a "risky way to grow your wealth!" When in reality it is actually a necessary act to fight inflation and get a plethora of wealth. Have my net worth by $1M in the last 4 years.
I've been scrambling for somewhere to take a dive, where I can make an effort to use the returns to pay bills so I can quit my job . I heard that financial market is one of the most resilient wealth building tools we have to use to our advantage but my issue now is i lack proper market knowledge on how to outperform it. I've $67k atm
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So you destroyed your credit score?
Well have fun trying to buy a car or be able to actually afford a house ever again.
Increasing interest rates are going to continue to increase bank failures because it puts their commercial paper and treasuries underwater. They need to freeze interest rates to prevent a deep recession in the economy. At the same time the White house needs to help industry to increase gas and oil output to reduce fuel prices. The war on oil only serves to increase energy prices which trickles out to the rest of the economy as inflation. Lowering interest rates, tightening the money supply, reducing government spending and increasing the cheap supply of fuel will result in reduced inflation and a booming economy. Presto, no inflation and no recession. Of course there are a lot of other agendas out there that will never let all of that happen, so hello recession and sticky inflation.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time.
The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading.
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You have my vote
' Supply side interventions'
Oh my. I've been reading for a month straight about inflation. This is the first rational intelligent contribution I have heard. Thanks to this man. I will be looking into his books and other thoughts.
Also, interviewers please don't interrupt your guest. Let them finish their thought. We want to hear.
Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stocck portfolio, what’s the best way to take advantage of this bear market?
While there’s more pain to come, investors should look for stocks like Royal Philips NV and Alstom SA that have been beaten down enough that they’re a bargain or get a good portfolio manager
@@tradekings5433 Having an investment adviser is the best way to go about the market right now, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
@@Natalieneptune469 I need guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can one reach this adviser?
@@Alejandracamacho357 Susan Agnes Hancock, you can search her name.
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There is a perfect storm forming in America. Inflation, sever drought in the farm belt, the pandemic, food shortages, diesel fuel and heating fuel shortages, baby formula shortage, shortage of and price of available cars, the price of housing. It's all coming together and could lead to real disaster toward the end of this year.(or sooner)
For decades, government policy has been throwing the future under the bus. The day of reckoning is coming. I expect the stock market to crash as much as 80%. Investors will rush out of stocks and into real assets, There's going to be no cash in the banks.... You need a survival plan.
These are the conditions where life changing money is made to those that stay calm, are patient, and take controlled risk. Volatility goes both ways. Larger the red candles the larger the green ones.
@@kansasmile How do you mean? I do not know much about the market but based on little knowledge i have this is the best time to venture into the market but the only thing holding me back is the steady fluctuations in prices. i really need guidance because i want to use this avenue that everything is on discount to build a dividend yielding portfolio before i retire in two years. how achievable is this?
@@blaquopaque yes chris, your goals are simple and achievable in the nearest future. I believe that to benefit from the financial market one need a full trading system with a watchlist, position sizing and signals for maximizing gain and minimizing losses, technical analysis alone is not a trading system.
@@kansasmile Good point there, I have been trading for about 6 months Now and just about every trade backfires. Nearly impossible for me to catch more than a few points. I try to do top down analysis on my own but is doesn't work for me. How beneficial has it been for you employing an F.A? Do you recommend i get one? and if yes then i'm open for recommendations if any.
The political elites in the US have known they had neglected the financial well being of the middle class for so many years in the past till now, and Bloomberg is still talking about it Now, 2022. Really, so is this problem Too hard to solve, Cannot solve or not willing to solve, take your pick.
This guy has been losing it for 20 years
sounds a bit senile.
Stiglitz is now a supply-sider! Bravo!
Every answer contradicts the previous one. One thing is clear he is not for raising interest rates😉
And to think this guy teaches economics. 🤯
He's a pure socialist. I agree though, raising rates is not going to solve the inflation problem - it may acerbate it. The problem is supply restriction. The government needs to push more energy drilling and stop turning our food supply into gas.
@@ppumpkin3282 Of course he's a socialist.
And we know why.
Wealth inequality is reaching dangerous levels. People have lost almost half their income and life savings due to inflation yet the wealthiest have doubled their wealth, reaching triple digit billions.
When people have yachts that cost a million a week to maintain while the rest of us have been stagnant for decades, something is seriously wrong.
Isn’t the solution obvious? You implied it yourself. Redistribution, and Regulation. There is undoubtedly enough wealth created, but it is not distributed equally. The key is to prevent the Right from capturing the middle class.
Cheap credit causing asset bubbles causes this inequality…
People today have more food, massive free entertainment on the web, cell phones, cars, public transportation, health care and housing then in the history of man. Envy is not becoming on you.
Yeah let’s steal all the rich people’s money… socialism in a nut shell
Blaming the rich is never the solution. They will just go somewhere else. The wealthy are not the problem.
This guy wanted to say more, but they interrupted him or changed the subject
"Rather than panicking about inflation, we should be worrying about what will happen to aggregate demand when the funds provided by fiscal relief packages dry up" -- Joe Stiglitz 2021.
"Moreover, even if inflationary pressures were to become truly worrisome, we have tools to dampen demand (and using them would actually strengthen the economy’s long-term prospects). For starters, there is the US Federal Reserve’s interest-rate policy ... Returning to more normal interest rates would be a good thing." -- Joe Stiglitz 2021
Ha ha
Classic . Thanks for the Bullshing...
I owe you a Trillion..
I was thinking the same thing. I think Stiglitz is great but he needs to elaborate more on this. His entire premise was it’s easier to reign in inflation by raising rates yet now he talks as though his position is reversed. He needs to explain more on why raising rates in this case is different and if he still sticks to his original position that raising rates is effective. I believe he’s right that it’s easier to control and bring money supply in versus giving it out but why is there such a problem here and how can it be resolved.
75% of the dollars in circulation were printed aftwe 2008...let that sink in
REALLY p r i n t e d - or just created ?
We are in trouble if we are listening to this dude.
Too late
Sheesh i could have just watched a Bernie sanders campaign rally
Lowering interest rates didn't fix deflation either but it didn't stop us doing it and creating a massive asset bubble. You can't argue rates should only go lower. 🤷🏻♂️
I dont think you understand how any of this works.
@@SmartestDumbGuy In the short term, raising the interest rate an reducing the money supply will bring down inflation. The question is by how much? And also address the supply side; very difficult under current circumstances.
@@murunatan6661 supply is at all time highs for everything.
Shortages are from worldwide demand too high of everything. Manufacturing is still crushing it. Profits all time highs. I own commercials properties and all my tennants have never seen such demand in history. I own a national automotive franchise and I have never seen demand this huge. There is a reason our ports were in a traffic jam.
Did he just suggest that a way to fight inflation is that we need to provide govt childcare and put more mothers to work?
Yes. Spend more money to get families more money to spend on things we don't produce. Pretty sure that's deflationary... right?
Indenturing women and having the state raise children as soulless automatons is a primary goal of the oligarchs. Shattering the family unit has been on the menu for ages.
@@stateofopportunity1286 And precisely that is the raison de’tre of Davos.
Indeed. He’s lost his mind clearly....I couldn’t believe he actually said that!
Isn’t that the communist way of life?
He's right ✅️ but mostly because they're not really raising rates. They're playing round with 1% rate hikes instead of 15% rate hikes.
~19% real inflation. Anything less than the inflation rate is contributing to a higher yet inflation rate, isn't it?
Too much money chasing too few goods. It truly is that simple.
This guy can’t give a straight answer to anything that doesn’t revolve around him. “Raising Interest rates won’t create more food” no shit… they’re completely different things. “How do we create solidarity between the elites and the middle class?” “Well we need morre solidarity, or the whole system will fall apart”. Maybe your generation would’ve fell for that bs back in your day old man but times have changed
I won't dismiss a professor of economics, but wonder why he didn't mention liquidity from the QE. Does America sell oil over seas? Did I miss him talking about American oil prices? Oil prices are just as big of an issue as our supply chain.
Sadly, I don't think this guy has a clue. Paul Krugman also got this whole mess wrong, also a Nobel recipient. Overall inflation is generally a money supply issue. Raising interest rates slows M2 growth. Other than selling assets off the Fed balance sheet, how else can you reduce money supply? Maybe $2.7T in MBS purchases is why housing is up 20%y/y and people's rent is nearly doubling. Every ad I see is for some new REIT. I shorted the housing market a few weeks ago(Puts - SCHH ETF). Up over 200% and it's just beginning. Watch that Lumber to Gold ratio!
Why won't you dismiss him? Is he holier than thou or something?!
If he's wrong, he's wrong.
@@philsimmer They know that.... even if they don't talk of it.
Inflation is caused by high energy prices. Allow for oil and natural gas drilling and establish a longer transition plan to renewables.
They already do that. Look at US oil production graph. We produce more than ever in history.
It's called catch 22. When inflation already hit double digit the Fed hiked a puny 50 bps. Should have opened with a Big Bang like BOE or Canada's 1%! Don't act too hawkish! And stay controlled on the Sanctions narrative because no businesses would like to be entrapped in midst of nuclear war!!
Excessive printing of money causes inflation. Always has. Always will.
Central Banks over printing money for years. Google: How many Dollars printed in the last 3 years
Stiglitz has never seen a problem that couldn’t be solved with the government paying for stuff, a true Keynsian’s Keynsian. I do think that he’s great at identifying problems just not all that great at solving them.
Thank the lord. That’s the true problem
Well the economic system has been distorted drastically due to the squeezing of wages AND the ridiculously high management rewards. The CEO rates of remuneration are correlated with stock market returns, and they have the motivation then to inflate that artificially by share buy-backs, and cutting costs including wages and pushing people to the limit on productivity. The end of it is the people just don't want to kill themselves to just make a living and so they resign if they possibly can and just live on less. Those that can't have nowhere to go, they are already doing multiple jobs, now with inflation the entire system is absolutely crashing. So don't talk to me about Keynes. That is necessary to mop up the social and economic mess from these distortions, killing off the middle classes and crushing the bottom. We can get away with it for much of the time, but no longer. People are going to start attacking others physically there is going to be a breakdown in the social fabric. This is a reality and it's here now.
@@deborahcurtis1385 I’m not reading your essay Deborah
@@esayasasefa5551 ROFL!!! Idiocy and rudeness is rewarded! Keep it up! !!
@@deborahcurtis1385 I have a rude/dry sense of humor, I was hoping to make you laugh 😆
Great insight
We have characteristics from the last four major recessions.
From 2020: Lingering covid in China shutting things down, and now a possible monkeypox problem. Other supply chians messed up as well.
From 2008: Massive housing problem, as housing prices have skyrocketed purely from speculation, and now mortgage rates have been disproportionately affected by the fedfunds rate hike. Even if the loans aren't as bad, it's still going to crash.
From 2000: Extremely overvalued stock market, Shiller PE at 30, and was recently at 37.
From 1982: High inflation from oil prices, and fedfund rate hikes in order to lower the inflation but throwing the economy into recession.
The labor market hasn't taken a massive hit yet, but I suspect it already has, and when panic buying from expected inflation lowers, there will be mass unemployment and this economy will be thrown into depression.
This is exactly how capitalism works. We’ve known that since the 1830s. Markets are good at creating wealth, but rapid price fluctuations destabilize society. Excess capital tries to create new markets which disrupts existing arrangements. Housing markets and labour markets can be stabilized with a national policy structure. Energy is supposed to be transitioned. And health policy just need to be followed, to be effective. It is only hard to handle, when you give power to people who obstruct anything being done.
@@Rnankn Whatever you say is good aside from health policy. Keep those experimental mandates out of it.
@@Rnankn I wouldn't say this is innate in capitalism, these bubbles come from artificial credit expansion via the Fed. The Fed is not a part of capitalism, it is part of the government.
Monkeypox is BS. Even sounds like a concocted joke.
The spending and stimulation helped us avoid a recession caused by the epidemic while also raising the middle class's level of living. The middle class and poor would have fared considerably better during this inflation if better construction had been enacted.
Our approach will be to hike interest rates, which will mostly affect the middle and lower classes. Increased taxes on the rich would be a better approach to remove money from the system and lessen inflation caused by too much money.
This strategy would have a far less impact on the middle class and the impoverished. Still, more than too much money, supply, and demand concerns are to blame for this inflation.
@Zahair O'Brian Who is this your advisor, I wish to check up on her details on the web with her name.
The FED "has not lost control". The economy is doing exactly what it had planned for it to do. We have to be desperate to accept what they have planned for the WORLD--not just the US
The "stimulation" now gives us $6.00 gas, $10,000 "market adjusted prices" on cars and $600,000 broken townhouses. Was it worth it?
He's making an extremely good point.
On defense, China has the largest navy in the world today. They are soon going to be an equal peer military competitor. America can and should try to spend smarter, but that is just a buzz phrase. Military contractors squander money as easily as they breathe. One of the first questions asked in brainstorm sessions is, "assuming unlimited funds, how should we tackle X problem". I am involved in purchasing, those are the questions I hear, at every stage of the design process. Spending smarter won't happen. China is still a threat and close to being a technical equal. What they don't have in quality they make up in low cost and quantity. America needs systems that can destroy the enemy at a 4 to 1 ratio to maintain dominance in the Pacific. Ideally 10 to 1.. but that's everyone's dream.
Many good points
Guy is an fool. Inflation is always a monetary supply problem. The other side world problems don't help also.
The problems are literally, supply constraints. You can lower demand by raising rates until it crashes the economy. Then people will buy less, and prices will come down. But that isn’t necessary. You can also grow more food - for example by replacing cattle with grain. Build or rezone for more homes. Also rent price controls can limit increases. Transportation projects can be built out to lower demand on fuels. Renewable energy has to be built anyway. Doing these things increases supply to better match demand.
@@Rnankn Google: How many Dollars printed in the last 3 years
I'd like to have seen a longer interview/more in depth discussion with him.
He has no clue how things work. Why are they talking to these people who are non elected representatives? These people want to rule over us. Look into the world economic forums. They want us to have meatless diets by 2030… they want to own all the property.
“You will own nothing and be happy”
You should read his book. Globalization and its Discontents. It's pretty decent for a book by an economist.
He is your standard garden variety left wing economist. You can listed to hundreds like him say the same thing
I'd advice you his intervention at the University of Padua about two weeks ago
@@pietrocasotto8814 intervention? lol
Supply-Side Interventions alone is not enough to stop inflation given that most of our supply comes from China which is in lock-down as we speak. We need a whole lot more than that and fast Dr. Stiglitz
We need to repatriate our production sector and remove the imperialists from power, permanently.
Not possible and this is my point. You need to be realistic and we're going to destroy the social fabric, continue to reward the super rich and do nothing to help the poor. Something has to give.
I wonder if Professor Stiglitz also endorses other supply-side remedies such as allowing the private sector to increase drilling for oil and gas? :). I'm just kidding. For progressive economists like Stiglitz, almost all problems are solved by more and more government "solutions".
The oil sector is sitting on 6000 drilling permits. Kindly f off. All the oil CEO's on this channel repeat not increasing CAPEX and production.
@@MomopilotCool And they are making buckets of money now being cautious. But oil before was depressed for many years and even went negative when there was no where to store it. Something the oil drillers want to avoid in future until the necessary infrastructure and guarantees are in place.
The contractors working on transportation (oil pipelines) and storage haven't been able to get their permits through so the oil drillers will remain cautious and the government will not be able to provide guarantees.
Government is God to the left… Any and every problem? More government and taxes!!
Indeed. Prices are raising because of scarcity not excess consumption!
Of course raising interest rates at the pace the fed is raising them at wont fix inflation! The markets have figured out that by the time the fed raises rates to " neutral " to cause a real dent in inflation the Fed will have to immediately reverse course and lower the interest rates again to become accommodative again . The markets are going to take full advantage of inflation to line their pockets on the way up and will line their pockets on the way down with cheap borrowed money so its a win win for the market and a lose lose for us the little guy .
If that's the case, then inflation will surely run away.
I was making dinner and looked down and thought it was Mel Brooks. Wait I think it is
Yes, it must be accompanied by other measures. But it will help a lot.
This guy has no clue how things works. Why are they talking to him?!
He woman Nobel prize for economics, where is your award?
no trolling until you disclose your degree and education and awards
@@ekoboyz757 finance degree, I make a lot of money. I’m top 5% at what I do
@@ekoboyz757 degrees are a scam. Useless expensive pieces of paper. The most educated people I know are the poorest!
These two will not allow Stiglitz to finish a single point.
How is Russia not reliable trade partner if it carried out all of its obligations even when EU's hostile attitude was making it exceedingly difficult to do so? This is just bonkers.
Oh, it's interesting to hear this again, now in mid-June... I think JS's point is that we need to fix the supply-side issues ASAP.
Exactly! But if you say more than that, it's not acceptable discussion. And some supply side issues are not fixable. Then what? This is why austerity and slamming down interest rates is using a sledgehammer to crush the wrong nut. (I hope this is brief enough for the twits who celebrate not wanting to read anything detailed.)
It's simple reduce the money supply by 10 trillion dollars. Keep the prime rate by rule above the inflation rate.
A 9th grader can do that with out having to think .
Only that America would be in stone age if they follow your advice.
@@inflationking1271 it would hurt. But Trump and Biden increased the m2 money supply by 7trillion dollars since 2019. As the inflation rate come down lower the prime rate behind it, but keep the prime always above the inflation rate 1/4 point.
@@dannypowers4995 real estate, equity and bond markets would collapse simply because there is too much debt in the system..but go ahead - I'm shorting the market. In any case
This “expert” said absolutely nothing, nor did he answer any of the questions. He’s part if the problem within our university’s. He actually said by woman working in child care, supported by the Biden administration, would help inflation. He needs to retire...now. Right now!
Germany's reliance on Russia's gas IS the result of trying to move to renewable energy.
This guy is sharp
He lost me when he brought up senator Kerry.
A discussion on inflation and no mention of the drastic increase in M2 supply in the last few years seems very Orwellian.
Talking about money supply on mainstream news is taboo!
The only substantive suggestion to combat inflation we got from this interview was the interviewee's suggestion publicly supported child care might make more mothers available for the work force. Not much of an interview, but a pathetic source for an interview.
How does Putting more mothers to work fight price inflation?
And it implies more government spending to build daycares, which in itself would cause more inflation. 🤦🏼♂️
@@jabbottron9643 easy. They have less time to spend because they must work in shity, low wage jobs. This way demand goes down due to this Nobel price winner.... He can take his Nobel price and put it where no sun is shining.
With the inflation noise on the media.....I was able to increase my price of 20% and cut cost of 10% (reduce production) ..a gain of 30%..
Not because I have to......because I can.......
Don't worry, I produce specialize component made with automated and robotic manufacturing operation.......not for regular customer
Stiglitzito had lost it a long time ago. He now wades off into the weeds à la Noah Chum-sky.
Typical Academic who never had a REAL job .
🙌 👏 🙏 🤝 👍
The working assumption is that the Middle Class is more resilient than it actually is. Student loan indebtedness, to consider one vector, is delaying establishment of families and compromising generational wealth transfers. The role colleges and universities have played in burdening students’ dependencies on better schools has amounted to cultural 5:15 sleight of hand.
Making money easy to borrow makes things more expensive for people who can't borrow.
RAISING INTEREST RATES WAS NEVER ABOUT FIXING INFLATION, IT WAS TO SLOOOW IT DOWN SO IT DOES NOT BECOME HYPER !!!!!
USA 9% INFLATION IS HERE FOR ETERNITY !!! 😂🤣😂🤣
This country is insane. Outsourcing everything. In times of crisis the others will not help us by providing vital products & services to us.
How can you outsource energy, food, medical products, defense industry products to outside of your country?
China is trying to be self sufficient while USA is outsourcing more & more. What happens to the children who are brought up with little or no real skills to produce things?
Texting & social media are not skills. Neither is watching TV or trading the stock market.
Not outsourcing everything ! Its a shame, they do not outsource all POLITITIANS 🙌 👏 🙏
This is exactly what happened. Back in the start of December they raised interest rates on credit cards to 30.99%, but that didn't stop me from borrowing money so it didn't work.
It’s kept me from ever borrowing on my credit card. Goodness.
No middle class before Unions & Roosevelt.
No middle class after deunionizing & Reagan.
Halve health care costs with public healthcare.
Halve energy costs with renewables & batteries.
Halve education costs with free education.
Halve defense costs with Internationalizing US bases to allies.
Start firing government employees
The question and answer completely missed the mark about inflation: inflation is driven by Powell/Fed and the politicians allowing QE and massive deficit driven spending to go unchecked. Let’s go back to pre-Nixon and balance the federal budget, put execution in place to balance the trade deficit and re-invest in the US worker.
What he said about defense spending is totally true. Not sure about the validity of his other comments. Inflation is caused by an increase in the money supply, plain and simple.
LEGEND
I am Russian, so perhaps I am biased, but when he said that Russia is not reliable partner, what exactly he meant? For example Russian gold and foreign currency reserves were confiscated by US, does it make US a reliable trading partner? Russia asked to pay Europeans in roubles, which I guess is a bad thing, because it means they didn't honor a contract but they didn't interrupt supply, just a new payment system, but after you get robbed you could just cut of the supply, which didn't happen. I think a lot of countries now think that US is not a reliable partner, try to store your reserves in US/UK they can get confiscated for any reason.
Stop interrupting the speakers…
Raising interest rate won't fix inflation? Are you kidding me. It does. Feds need to raise it to 20% immediately
Totally agree!, raising interest rates is not going to create more food OR kill demand for food. They are completely off-target.
Globalization is what made the recent pandemic possible.
Imagine this guy is educating future leaders. OMG
Good or bad?
@@rookiej5587 Clearly Bad. I lost him at “America not being able to make complicated things” …
The way to fix inflation is to produce more oil and use profits to pay down debt.
The constellation of factors is ruptural, so monetary policy requires very special political and economic reinforcements.
It wont fix inflation, but it will certainly help with slowing demand, which in turn, could help manage expectation and in turn, inflation
Demand is not high. Unless what you have is a shortage, which in that case is the reason for inflation.
It appears the Nobel prize winner was wrong.
It's not interest rates that needs to go up but money printing has to stop or what happened in Germany before WWII will happen in the western economies.
Things are gonna have to get really. Really bad for Americans to cut back on consuming. It’s not there style. Many many many Americans have a nice piece of change.
Yes. There are poor people in America but many Americans have money. And I mean a nice little chunk.
Stiglitz says we need to spend not more but smarter on defense. Maybe true. But we need to spend smarter everywhere in government. We have so many programs and services that are wasteful.
Is the polinomics and ecoticianism?
So he says that oil companies are making a fortune. But won't they pay income taxes on that?!? The answer is yes.
With due respect, when was the last time Joe published anything in a peer review ed journal? the stuff he's saying sometimes is just wrong. Peer reviewer
Hahahaha, you act like peer reviews can't be paid for or extorted!!
@@wolfiestreet6899 extremely unlikely in his field (unlike medical research)
@@jn3750 How so? Please, why not explain?
"Inflation is always and everywhere a monetary phenomenon. "
Milton Friedman
Very true. This latest inflation has been exacerbated with sanctions rather than real economics. If the markets were allowed to operate freely without the political interference then oil prices can correct more quickly and inflation would lower.
Unfortunately, too many people are over leveraged, have their pensions tied to the stock market and any reduction in liquidity and higher borrowing costs would harm these snowflakes.
@@kynchan3332 ...so based on your comment, one can safely bet that between recession and inflation, the Fed will choose to fight recession.
Buckle Up!
@@angusm9419 They always choose to fight recession long term and debase the currency. Then there is some remarkable reset either from war (reduces the number of consumers) or where policies are relaxed to allow the market to operate/clear out the mess and then government resumes with currency debasement.
In some countries, when the currency loses nearly all its value another currency is introduced and the same happens. Inflation is too hard to control long term.
So to stay ahead it is beneficial to hold assets that appreciate faster than inflation and also have productive assets that supply essential products to protect against higher living costs.
@@kynchan3332 I absolutely agree.
He has always been right. Late this time but right.
AND JUST ECB ANNOUNCED THAT IS GOING TO PASS 0.75
Please what is going on ????
Raising rates would not solve the issue , yes. However, more normal rates and liquidity under leash would definitely lead money to what is necessary or enable deployment in productive uses rather than asset price bloat ups and alternate avenues such as crypto currencies. Crypto/Blockchain rather than as currency would be the new enabler for Finite assets such as Bonds and fixed income instruments , dematerialization of finite assets such as property ownership rather than as currency where value can be lost by adding few more zeroes. The present state is less of Inflation but more a sudden onset of Paper/fiat money devaluation caused by heedless paper money printing
With the benefit of a year passing by and looking at this conversation in hindsight, these three talking heads were fundamentally wrong. The inflation we just endured was caused by government printing money far in excess of GDP growth. US money, perhaps measured best by M2 money supply, shot up sharply at a rate far, far higher than GDP growth meaning that there were more dollars trying to buy the same output of goods. The price of the goods went up proportionately to the amount of available money, rebalancing prices at a higher level. The US government made out great as it created money out of thin air and doled it out as it chose. The losers were the millions of Americans who had saved money in savings, checking accounts, etc. and found that the real value of their saved money decreased by 30%-40%. They lost that value to the US government. Another group of losers are the millions of working Americans living paycheck to paycheck, who saw the price of needed goods rise by 30%-40% but their wages stayed flat, meaning their paycheck has less purchasing power today. In order to tame inflation the US government has done two things. The overt action was to raise interest rates, damping the economy while returning a small amount of lost value to the savers. The quiet action is that the US government has shrunk the M2 money supply, quietly taking money out of the system. Because of these two actions inflation has dropped from a high of 9% to about 3% today and is trending downward. But what was inflated won't go back to original prices. Mom and pop savers, your savings are devalued forever. Working Americans, you'll have to claw and claw to get your paychecks back to the purchasing power you had before.
Let's all listen to an academic elite. What could go wrong?
Thanks for this news. This information will add my knowledge about the problems of economy's situation now 🙏😅☺️
Want to know what'll end inflation ( price gouging), proof of cost.
Doesn't he dare to speak of taxation of the rich in Davos?
🙌 👏 🙏 🤝 👍
The fed’s balance sheet must be dramatically decreased.
Number 1, We need continue advancing drone technology, sea and air
Nor will the purchasing power of the people.(inflation problem)
It's a new economic system that won't be needing interest
nor purchasing power anymore...........
It's a fact. Ask any economist.
It's worked several times before.
No it makes it more expensive for the first time home buyer
I would have been commenting on rather another Stieglitz Joseph intervention: the lecture on the China success, that he had done in 2016 in the Norwegian business School, rather than to this video. Because much of what every country should do to reform its economic system is exposed in that lecture , including the question of the financial system reform: interests rate, inflation and so on ...
No mention of Yemen ?
What will ?
"We should have moved to renewable energy (faster more robustly), realizing that it was more reliable than political dictators"
Except they were shutting down the most reliable and clean energy they had and are now rethinking that sin.
Only a small portion of the world can produce enough energy from solar and wind to generate enough energy to replace the energy that creating clean energy creates.
Salut, après quelques jours vers la direction régionale de banque populaire du Maroc a but de régulariser notre situation avec cette banque concerne des transferts d'un montant de 5,1 milliards euros reçu sur notre compte bancaire de défferentes banking européens bce FMI et autres et que la banque populaire du Maroc a rein déclarée, que peut-on conclure a propos de cette banque ?!!
Noureddine elhoussni
We saw this coming when we raised the minimum wage. Inflation is the 1% way of passing the buck to someone else and keeping their profits rising. What needs to happen is the 1% should find ways to reinvest in their country instead of just hoarding all the money. We desperately need high speed rail in this country. Yes that would cut a slice of the auto industry but we need to think about our people instead of profits.
This just in: 'drinking water won't solve dehydration'
Gee I guess Paul Volcker was WRONG to raise interest rates.
Stiglitz is wrong. Russia consistently supplied gas reliably to Germany and the rest of EU from late 1960s with no disruptions, until Ukraine a few times started stealing gas under Yushchenko (2006, 2009), but flows bypassing Ukraine continued unabated.
Recently It was EU and NATO that have been trying to create legal and administrative obstacles to pipeline projects, and now limit imports and freeze Russian funds stored in the West. The initiative to disrupt gas partnership came from Washington and NATO, not Russia. The latter is ALSO dependent on German and EU gas market. Stiglitz ought to study the topic better.
Is he under the impression women aren’t working? This is 2023 not 1943😂