Nobel Stiglitz: neoliberalism is dead

Joseph Stiglitz, Nobel prize winner in 2001, thinks that neoliberalism is coming to an end, or better, is dead.

And, after having explained to the Financial Times the proposal to divide the eurozone ousting Germany and Greece, the economist explained to Business Insider as the time of liberalism is just about up. This recipe, for so long defined as the best way to stimulate economic growth, enjoyed its golden age in the United States with former Presidents Ronald Reagan and Bill Clinton, and, in the UK, with former British Prime Minister Margaret Thatcher.

But for some time that its effectiveness no longer convincing: at least the financial crisis in 2008 after the '' neoliberal euphoria "- a term coined by Nobel Prize – that has characterized recent years.

"The young students are not interested to say that neoliberalism works; they try to figure out where markets fail and how to remedy it, assuming that failures are extended. This is true both in microeconomics and in macroeconomics. I do not say that it is so everywhere, but I would say that it is a dominant trend. In political circles I believe that it is the same thing. Obviously, there are people in the right direction that, in the US, does not admit it. " 

Stiglitz believes that the pillars of neoliberalism are now largely disregarded. "We went from neoliberal euphoria that" markets work well almost always "and all that is needed is to ensure the continuity of government, at the thought that" markets do not work. " Now the debate is about how to make sure that governments are functioning, alleviating this situation. "

So much so that its verdict is clear: "Neoliberalism is dead in both developing and developed countries."