A Report by Joseph E. Stiglitz, Nobel Laureate in Economics
The Report “Rewriting the rules of the European Economy”, authored by Nobel Laureate Joseph Stiglitz, stresses that continuing on the path of recovery and preventing subsequent crises is co-dependent on the ability of the EU to revisit the decisions that led to an incomplete economic and financial governance architecture, with failing instruments that are still in place now.
The two key messages coming out of the book are the recommendations to
- transform the Stability and Growth Pact into a Stability, Growth and Employment Pact, so as to finally include employment as a key objective of European integration and
- restore policy tools for a proper management of aggregate demand, while sustaining internal demand in the Euro area.