Opinion: (Joseph Stiglitz, Economist, Professor at Columbia University, recipient of the Nobel Memorial Prize in Economic Sciences (2001), from calcalist.co.il): “’Economic models used by central banks caused the crisis.’
“’Three years ago, in August 2008, we gathered here in Lindau, and amazingly, there was not a single discussion prior to the giant crisis that came less than a month later. How could a group of leading economists who were supposed to think carefully about the main problems in the global economy have missed the biggest financial crisis in 75 years?’
“According to Stiglitz, ‘there is a serious crisis not only in economy, but also in the science of economics.’
“The macro-economic models, which were used by central banks until now, have created methods of work and thinking that are at the center of the crisis, and the chief among them is deregulation and the claim that if monetary policy will only worry about low inflation, it would be enough to keep steady growth. If we look back, these ideas seem almost absurd.”
My Comment: Economy reflects our egoistic connections. We have created this “science,” and it changes according to the growth and expansion of our egoism. Economy is its reflection, copy.
So today, when our ego has finished its development and formed a closed integral global system, different relations, typical of closed, rather than individual systems are manifested in it. But, as economists remained egoists and individualists, they cannot create a new economy—the economy of an integral global community.
Thus, their old tools are not suitable for our time. That is what the crisis is: the crisis of our outdated economic thinking. We must rebuild ourselves “from within,” become different, and match the new system of communication between us, which became manifested today.
To do this, we must create the environment around ourselves that will impose on us a new global integral relationship of interdependence through education, media, and so forth. Otherwise, we will not be able to see the crisis even a month in advance!