Nobel prize-winning economist Joseph Stiglitz has a new book out entitled “The Euro: How a Common Currency Threatens the Future of Europe.” On “The Zero Hour,” we spoke with Professor Stiglitz about the tension between globalization and democracy, the mistaken thinking that gave rise to the euro experiment, and what that experience can tell us about the need to resist bad trade deals like the Trans-Pacific Partnership, renegotiate older ones like NAFTA, and invest in jobs and growth in the United States. He also expressed opposition to a tax giveaway that’s reportedly in the works for corporations like Apple.
Stiglitz described the euro as “a fascinating experiment from an economist’s perspective,” adding that “it’s a failed experiment” but “there’s a lot we can learn.” As with globalization overall, he said, “the economics advanced faster than the political institutions that would make it work.”
Stiglitz noted that 62 percent of the voters in Spain, Portugal and Greece have voted against the draconian austerity policies imposed upon them by the Germans and the European Central Bank. He shared the concern that these policies are undermining European democracy and giving rise to extremist parties and movements on the far right.