If we start saving and developing countries put their money in reserves rather than spending it, where will demand for goods and services come from? That's basically the question Joe Stiglitz asks. If there is limited demand, you have a major problem.
Stiglitz thinks we should start looking at a couple of things. Boost equality by making our tax rates more progressive and by having all developed countries commit to increased foreign aid (possibly .7% of GDP). Spend the money needed to reverse global warming. Develop a global financial reserve system.
Interesting thoughts.
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