“A dollar reserve system that might have made sense for the 20th century no longer makes sense for 21st century,” Joseph Stiglitz, 2001 Nobel Laureate and Professor in Economics at Columbia University, said at a conference in Paris.
According to Mr. Stiglitz, France’s President Nicholas Sarkozy is right in his assessment that the disorder in currency markets has become unacceptable, and that the economic reality of a multipolar world will have to find sooner or later a translation on the monetary level. Stiglitz also pointed out during his presentation that France has articulated a much clearer vision of what needs to be done to fix the global financial system than the United States.
CNBC: “On both a national and international level, President Sarkozy has explained very well some of the economic, social and political reasons why something has to be done about bonuses whereas in the United States there has been no real discussion about that. Unfortunately too many people in the United States on the right have their heads buried in the sand,” said Stiglitz. “They try to pretend that we should go back to the kind of market economy that we had before the crisis. The reality is that we had a storm that the market created and it’s a storm that has happened over and over again.”
Stiglitz, who has become a leading critic of the global market economy, also said that it is only through state intervention that the global economy was saved.