During my three years as chief economist of the World Bank, labor market issues were looked at through the lens of neoclassical economics. A standard message was to increase labor market flexibility. The not-so-subtle subtext was to lower wages and lay off unneeded workers.
Joseph StiglitzMuch of my work in this period was concerned with exploring the logic of economic models, but also with attempting to reconcile the models with everyday observation.
Joseph StiglitzWhat you measure affects what you do. If you don't measure the right thing, you don't do the right thing.
Joseph StiglitzI think that for the developing world there are many versions of capitalism, and countries have to choose one that's appropriate.
Joseph StiglitzWall Street banks have used the same tactic that Bush used in the war on terror - fear - and they've basically said that if you don't do what we tell you, the sky will fall. If you don't do what we tell you, it will be the end of capitalism as we know it. The failure of Lehman Brothers lent some credence to those fears.
Joseph Stiglitz