Stiglitz Errs

Posted on Friday, October 3, 2008 at 9:16 pm

boudreaux_s.jpgDon Boudreaux: Despite being a Nobel laureate in economics, Joseph Stiglitz needs a refresher course in basic trade theory. In his Vanity Fair article he asserts that greater purchases by Americans of foreign oil would put upward pressure on the U.S. trade deficit and thereby “force the U.S. to continue borrowing gargantuan sums from abroad, making us even more indebted.” This claim is simply wrong, on two counts. See here.