Stiglitz Says Raising Interest Rates Won't Fix Inflation Problem

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.

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.

' 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?

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)

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 wanted to say more, but they interrupted him or changed the subject

75% of the dollars in circulation were printed aftwe 2008...let that sink in

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.

Stiglitz is now a supply-sider! Bravo!

Every answer contradicts the previous one. One thing is clear he is not for raising interest rates😉

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. 🤷🏻‍♂️

Sheesh i could have just watched a Bernie sanders campaign rally

"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

We are in trouble if we are listening to this dude.

Did he just suggest that a way to fight inflation is that we need to provide govt childcare and put more mothers to work?

Too much money chasing too few goods. It truly is that simple.

This guy has been losing it for 20 years

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.

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.