Editing Joseph Stiglitz (section)

====Advice for the eurozone countries====
In the 1990s, he wrote that "countries in North America and Europe should eliminate all tariffs and quotas (protectionist measures)".<ref>{{cite web|url=http://www.commondreams.org/views/101100-101.htm|title=Joseph Stiglitz -- A Dangerous Man, A World Bank Insider Who Defected|date=14 August 2013|url-status=dead|archive-url=https://web.archive.org/web/20130814032443/http://www.commondreams.org/views/101100-101.htm|archive-date=14 August 2013}}</ref> He now advises the [[Eurozone|eurozone countries]] to control their trade balance with Germany by means of export/[[import certificates]] or "trade chits" (a protectionist measure).<ref>{{cite web|last=Collier|first=Paul|date=September 30, 2016|title=Euro septic: Paul Collier on the problems with the European single currency and the unlikelihood of a solution|url=https://www.the-tls.co.uk/articles/public/euro-septic/|access-date=2021-05-05|website=The TLS}}</ref><ref>{{cite book|url=https://books.google.com/books?id=rBycCgAAQBAJ&q=trade+chits&pg=PT205|title=The Euro: How a Common Currency Threatens the Future of Europe|first=Joseph E.|last=Stiglitz|date=16 August 2016|publisher=W. W. Norton & Company|via=Google Books|isbn=9780393254037}}</ref><ref>{{cite web|url=https://lahcenbounadereconomics.blogspot.com.ar/2016/12/a-critical-issue-adressed-to-joseph.html|title=Lahcen Bounader's weblog: A Critical Issue Addressed to Joseph Stiglitz|first=Lahcen|last=Bounader|date=31 December 2016}}</ref>

Citing Keynesian theory, he explains that trade surpluses are harmful: "[[John Maynard Keynes]] pointed out that surpluses lead to weak global aggregate demand – countries running surpluses exert a "negative externality" on trading partners. Indeed, Keynes believed it was surplus countries, far more than those in deficit, that posed a threat to global prosperity; he went so far as to advocate a tax on surplus countries".<ref name=":0">{{cite web|url=https://www.theguardian.com/commentisfree/2010/may/05/reform-euro-or-bin-it-greece-germany|title=Reform the euro or bin it - Joseph Stiglitz|first=Joseph|last=Stiglitz|date=5 May 2010|website=The Guardian}}</ref> From the beginning of 1930, Keynes stopped believing in free trade, denounced the theory of [[comparative advantage]] (the basis of free trade) and adhered to protectionism.<ref name="J.M. Keynes, free trade and protectionism">{{Cite journal|doi = 10.7202/045556ar|title = J.M. Keynes, le libre-échange et le protectionnisme|year = 2011|last1 = Maurin|first1 = Max|journal = L'Actualité Économique|volume = 86|pages = 109–129|doi-access = free}}</ref><ref name="National Self-Sufficiency">{{cite journal|url=http://www.mtholyoke.edu/acad/intrel/interwar/keynes.htm|author=John Maynard Keynes|title=National Self-Sufficiency|journal=The Yale Review |volume= 22 |number= 4 |date=June 1933 |pages=755–769|access-date=14 May 2021|archive-date=15 May 2011|archive-url=https://web.archive.org/web/20110515044928/http://www.mtholyoke.edu/acad/intrel/interwar/keynes.htm|url-status=live}}</ref>

Stiglitz writes: "Germany's surplus means that the rest of Europe is in deficit. And the fact that these countries import more than they export contributes to the weakness of their economies". He thinks that surplus countries are getting richer at the expense of deficit countries. He notes that the euro is the cause of this deficit and that as the trade deficit declines GDP would rise and unemployment would fall: "The euro system means that Germany's exchange rate cannot increase compared to other euro area members. If the exchange rate were to rise, Germany would have more difficulty exporting and its economic model, based on strong exports, would cease. At the same time, the rest of Europe would export more, GDP would rise, and unemployment would fall".<ref name=":0" />

He also thinks that the rest of the world should impose a carbon-adjustment tax (a protectionist measure) on American exports that do not comply with global standard.<ref>{{cite web|url=https://www.theguardian.com/business/2017/jun/02/paris-climate-deal-to-trumps-rogue-america|title=How to respond to Trump's America - Joseph Stiglitz|first=Joseph|last=Stiglitz|date=2 June 2017|website=The Guardian}}</ref>