Joseph Stiglitz says action from the Federal Reserve, including future quantitative easing, will not solve the slow growth recovery plaguing job growth.”Monetary policy is not enough. It should not get our false hopes up that monetary policy is going to solve our problems,” the Nobel Prize winner and Columbia University professor told Betty Liu on Bloomberg TV.
Instead, Stiglitz pushed for greater stimulus out of Congress, saying the government should get its books in order at a future date when a full scale recover took hold.
“They should know that [the Fed is] not going to make much of a difference. Anyone putting their hope in monetary policy … is just wrong.”
Stiglitz also believes the low policy push may be stifling job growth, even as it bolstered lending.
“There are some people that think that in a way low interest rates are making it more likely that we’ll have a jobless recovery.”
His reasoning: low interest rates fuel intense capital projects, many times in technology — which does not create jobs. Take the pharmaceutical retail industry, which is now replacing human tellers with robots.
Below, the full interview with Betty Liu.