Opinion (Joseph Stiglitz, an American economist and a professor at Columbia University): “The basic idea is: A few powerhouses like China, Germany, and Japan, plus some commodity-based economies, have thrived in a system where they do all the exporting, and a few countries like the US run massive trade deficits.
“But that system is coming to an end, as countries realize that their trade deficits are unsustainable, and seek to become trade surplus countries at the same time. Of course, not everyone can run surpluses, so this becomes a game of hot potato, with everyone pushing the deficit to someone else, via currency devaluation and other aggressive trade moves.
“An alternative framework for the global financial system: a global reserve system, reform in WTO allowing developing countries to engage in industrial policies, global financial market regulations and capital account management, with a focus on limiting destabilizing short-term capital flows, globally coordinated monetary policy, with globalization, effects of monetary policy.”
My Comment: How reality changes the opinions of economists. They can see before them, at a distance, the only solution: total unity, partial or complete. However, they don’t know how to make the first step toward this future until they meet us.