Global Crisis -- Made in America

Joseph E. Stiglitz, 65: It should come as no surprise in a world of globalization that it's not just the good things that move more easily across borders, but the bad things as well. Now, America has exported its downturn to the world.

A global financial crisis requires a global solution. Uncoordinated macro-economic policies, for instance, have contributed to Europe’s problems. When the European Central Bank refused to lower interest rates earlier this year, focused as it was on the threat of inflation, while America's did, focused on the impending downturn, it led to a stronger euro. This in turn contributed to Europe's downturn, though it made America's GDP numbers look better for a while. Now, Europe's downturn is ricocheting back on America: Europe’s weaknesses are contributing to America's.