Joseph Stiglitz: Insights on Economics and Freedom

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For over thirty years, Joseph Stiglitz has been a prominent figure in the field of global economics, both as a key player within the system and as a critical observer of its shortcomings. He served as the chief economist at the World Bank during the late 1990s, following his time in President Bill Clinton’s administration. In recognition of his significant contributions to economic theory, he was awarded the Nobel Prize in Economic Sciences in 2001. His work has predominantly focused on the imbalances of information in economic transactions — illustrating how, for instance, sellers often have more information than buyers, and how borrowers may possess greater knowledge about their repayment capabilities than their lenders.

The essence of Stiglitz’s lifelong research can be encapsulated in the now widely acknowledged notion that free markets do not always operate on rational principles and tend to favor certain individuals over others. In his latest book, The Road to Freedom: Economics and the Good Society, he articulates this perspective with greater clarity by quoting the eminent philosopher Isaiah Berlin, who famously remarked: “Freedom for the wolves has often meant death to the sheep.”

This week, I had the privilege of sitting down with him in Sydney during his latest tour of Australia — a country he first visited in 1967. This visit was organized for a series of panels and lectures hosted by the Australia Institute. True to form, Stiglitz was unpretentious and generous with his time and insights, as he has been during my previous interviews with him at various pivotal moments in global economics.

During our conversation, I was delighted to include two enthusiastic 10th graders who were working on school assignments: Lyra Mesimeris, who has expressed a keen interest in journalism, and my son, Balthazar, affectionately known as Baz Oliva Cave, who has hinted, albeit just once, at a budding curiosity about the field of economics.

The interview that follows, conducted by the three of us with Professor Stiglitz — who, at the age of 81, continues to teach at Columbia University — has been edited for brevity and clarity.