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Stiglitz has part of it right, but his misguided concern about ‘who is going to finance the US government’ is disquieting at best.
The Federal Reserve faces a â€œquandaryâ€ in ending its
monetary stimulus programs because doing so may drive up the
cost of borrowing for the U.S. government, he said.
â€œThe question then is who is going to finance the U.S.
government,â€ Stiglitz said.
Stiglitz gave the interview before presenting a report to
French President Nicolas Sarkozy that urged world leaders to
drop an obsession for focusing on gross domestic product in
favor of broader measures of prosperity.