Rewriting the Rules of the European Economy: An Agenda for Growth and Shared Prosperity

Nobel Prize–winning economist Stiglitz, in collaboration with writer Carter Dougherty and The Foundation for European Progressive Studies, examines the European Union's rules, regulations, and institutions and offers alternatives with an eye toward revitalizing Europe's economy and creating widespread prosperity. They call for de-emphasizing the current policy of rigid anti-inflation austerity and suggest acting with fiscal flexibility and sharing the costs of crisis remedies across all member nations. They also propose both expanding the European Central Bank's mandate to include the promotion of full employment and making the ECB politically accountable. Other recommendations include increasing government investment to improve productivity and foster structural transformation, policing the marketplace and corporate governance more closely, improving taxation progressivity, strengthening labor protections, and enhancing the social welfare system. They further advise a massive rethinking of how the EU manages globalization. Stiglitz was lead author of a similar study, Rewriting the Rules of the American Economy.