May 17, 2022 2:53 pm

Moldawky worried: he can’t compete with Stiglitz

Within the same person, there are two Joseph Eugene Stiglitz. One, in 2001 he shared the Nobel Prize in Economics with George Arthur Akerlof and Andrew Michael Spence; the other, with reference to the Argentine economy, as of 2003 he became a machine of saying atrocities.

I learned from them that when suppliers and demanders do not have the same information, this asymmetry has consequences. Akerlof illustrated it with the case of the used car market, Spence applied it to the insurance market, while Stiglitz found the solution to the problem in state intervention.

In the 1960s I learned in college that behind every “market failure” there is a corresponding state intervention. Now we know that alongside market failures are “state failures”, therefore, before recommending state intervention you have to find out what is worse, if the failure of the market or the state. My father, who only attended elementary school, was very clear when he stated that “sometimes the remedy is worse than the disease.”

Stiglitz ignores this olympically, and without paying attention to the practical limitations of the States of the different countries, it continues to recommend State intervention.

I never fight over differences of opinion, but in Stiglitz’s case what really drives me crazy is the academic rationalization that he gave to the economic policies implemented by Néstor Carlos and Cristina Fernández de Kirchner, and now by Alberto Ángel Fernández. He said at the time that prestige was at stake in the economic policy implemented by Argentina as of 2003, and if at the international level the profession evaluated opinions properly, it would have very little prestige left.

If he was so enthusiastic and enthusiastic about the economic policies of the Kirchners, what he should have done is to have advised them in private, showing them the limitations of their schemes, instead of publicly rationalizing what it is technically indefensible.

These lines were inspired by a recent article of his, where he described the recovery of the level of activity in Argentina in 2021 as an “economic miracle”, almost double that of the United States; Not to mention that in 2020, the drop in Argentine GDP was much higher than that of the United States. That is why I say that the talented Roberto Moldavsky he’s busy.

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