You are here

Weak US numbers do not justify rate boost: Stiglitz

He says monetary policy isn't likely to make much difference in the US anyway, and will only raise the cost of capital in emerging markets.

Professor Stiglitz said that what the 'sick' US economy needs is a fiscal jumpstart based on investments, not consumption. The basic problem with the global economy was the lack of global aggregate demand. With demand, firms will produce more and invest more.

THE state of the US economy does not justify an increase in interest rates next year, with labour participation at its weakest in over 30 years, and wage growth still stagnating, said Nobel laureate in economics Joseph Stiglitz on Friday.

This comes as the professor at Columbia University