June 14 is the 165th day of the year (166th in leap years) in the Gregorian calendar. There are 200 days remaining until the end of the year.

Events[link]

• 1276 – While taking exile in Fuzhou in southern China, away from the advancing Mongol invaders, the remnants of the Song Dynasty court hold the coronation ceremony for the young prince Zhao Shi, making him Emperor Duanzong of Song.
• 1285 – Forces led by Prince Tran Quang Khai of Vietnam's Tran Dynasty destroys most of the invading Mongol naval fleet in a battle at Chuong Duong.
• 1287 – Kublai Khan defeated the force of Nayan and other traditionalist Borjigin princes in East Mongolia and Manchuria.
• 1381 – Richard II of England meets leaders of Peasants' Revolt on Blackheath. The Tower of London is stormed by rebels who enter without resistance.
• 1645 – English Civil War: Battle of Naseby – 12,000 Royalist forces are beaten by 15,000 Parliamentarian soldiers.
• 1648 – Margaret Jones is hanged in Boston for witchcraft in the first such execution for the Massachusetts colony.
• 1775 – American Revolutionary War: the Continental Army is established by the Continental Congress, marking the birth of the United States Army.
• 1777 – The Stars and Stripes is adopted by Congress as the Flag of the United States.
• 1789 – Mutiny on the Bounty: Bounty mutiny survivors including Captain William Bligh and 18 others reach Timor after a nearly 7,400 km (4,600 mi) journey in an open boat.
• 1789 – Whiskey distilled from maize is first produced by American clergyman the Rev Elijah Craig. It is named Bourbon because Rev Craig lived in Bourbon County, Kentucky.
• 1800 – The French Army of First Consul Napoleon Bonaparte defeats the Austrians at the Battle of Marengo in Northern Italy and re-conquers Italy.
• 1807 – Emperor Napoleon I's French Grande Armee defeats the Russian Army at the Battle of Friedland in Poland (modern Russian Kaliningrad Oblast) ending the War of the Fourth Coalition.
• 1821 – Badi VII, king of Sennar, surrenders his throne and realm to Isma'il Pasha, general of the Ottoman Empire, ending the existence of that Sudanese kingdom.
• 1822 – Charles Babbage proposes a difference engine in a paper to the Royal Astronomical Society entitled "Note on the application of machinery to the computation of astronomical and mathematical tables".
• 1830 – Beginning of the French colonization of Algeria: 34,000 French soldiers begin their invasion of Algiers, landing 27 kilometers west at Sidi Fredj.
• 1839 – Henley Royal Regatta: the village of Henley-on-Thames, on the River Thames in Oxfordshire, stages its first Regatta.
• 1846 – Bear Flag Revolt begins – Anglo settlers in Sonoma, California, start a rebellion against Mexico and proclaim the California Republic.
• 1863 – American Civil War: Battle of Second Winchester – a Union garrison is defeated by the Army of Northern Virginia in the Shenandoah Valley town of Winchester, Virginia.
• 1863 – Second Assault on the Confederate works at the Siege of Port Hudson during the American Civil War.
• 1872 – Trade unions are legalised in Canada.
• 1900 – Hawaii becomes a United States territory.
• 1900 – The Reichstag approves a second law that allows the expansion of the German navy.
• 1907 – Norway adopts female suffrage.
• 1919 – John Alcock and Arthur Whitten Brown depart St. John's, Newfoundland on the first nonstop transatlantic flight.
• 1926 – Brazil leaves the League of Nations
• 1937 – Pennsylvania becomes the first (and only) state of the United States to celebrate Flag Day officially as a state holiday.
• 1937 – U.S. House of Representatives passes the Marihuana Tax Act.
• 1940 – World War II: Paris falls under German occupation, and Allied forces retreat.
• 1940 – The Soviet Union presents an ultimatum to Lithuania resulting in Lithuanian loss of independence.
• 1940 – A group of 728 Polish political prisoners from Tarnów become the first residents of the Auschwitz concentration camp.
• 1941 – June deportation, the first major wave of Soviet mass deportations and murder of Estonians, Latvians and Lithuanians, begins.
• 1944 – World War II: After several failed attempts, the British Army abandons Operation Perch, its plan to capture the German-occupied town of Caen.
• 1945 – World War II: U.S and Filipino forces at the Battle of Bessang Pass in Ilocos Sur province in Northern Luzon.
• 1945 – World War II: Filipino troops of the 15th, 66th and 121st Infantry Regiment, Philippine Commonwealth Army, USAFIP-NL was completed and they liberating the captured in Ilocos Sur start the Battle of Bessang Pass in Northern Luzon.
• 1947 – Roswell UFO incident A supposed UFO crash lands in Roswell, New Mexico
• 1951 – UNIVAC I is dedicated by the U.S. Census Bureau.
• 1952 – The keel is laid for the nuclear submarine USS Nautilus.
• 1954 – U.S. President Dwight D. Eisenhower signs a bill into law that places the words "under God" into the U.S. Pledge of Allegiance.
• 1955 – Chile becomes a signatory to the Buenos Aires copyright treaty.
• 1959 – Disneyland Monorail System, the first daily operating monorail system in the Western Hemisphere, opens to the public in Anaheim, California.
• 1959 – A group of Dominican exiles depart from Cuba and land in the Dominican Republic with the intent of overthrowing the totalitarian government of Rafael Leónidas Trujillo Molina. Save for four of them, all are killed and/or executed.
• 1962 – The European Space Research Organisation is established in Paris – later becoming the European Space Agency.
• 1965 – Nguyen Cao Ky became Prime Minister of South Vietnam at the head of a military junta; General Nguyen Van Thieu became the figurehead chief of state.
• 1966 – The Vatican announces the abolition of the Index Librorum Prohibitorum (index of prohibited books), which was originally instituted in 1557.
• 1967 – Mariner program: Mariner 5 is launched toward Venus.
• 1982 – The Falklands War ends: Argentine forces in the capital Stanley unconditionally surrender to British forces.
• 1985 – TWA Flight 847 is hijacked by Hezbollah shortly after take-off from Athens, Greece.
• 1994 – The 1994 Stanley Cup riot occurs after the New York Rangers win the Stanley Cup from Vancouver, causing an estimated C$1.1 million, thus forcing 200 arrests and injuries. One person is also left with permanent brain damage.

Births[link]

• 1444 – Nilakantha Somayaji, Indian astronomer and mathematician (d. 1544)
• 1479 – Giglio Gregorio Giraldi, Italian poet (d. 1552)
• 1529 – Archduke Ferdinand II of Austria (d. 1595)
• 1691 – Jan Francisci, Hungarian born organist and composer (d. 1758)
• 1726 – James Hutton, Scottish naturalist (d. 1797)
• 1730 – Antonio Sacchini, Italian opera composer (d. 1786)
• 1763 – Simon Mayr, German composer (d. 1845)
• 1796 – Nikolai Brashman, Russian mathematician (d. 1866)
• 1798 – František Palacký, Czech scholar and politician (d. 1876)
• 1801 – Heber C. Kimball, American religious leader (d. 1868)
• 1811 – Harriet Beecher Stowe, American novelist and abolitionist (d. 1896)
• 1812 – Fernando Wood, American politician (d. 1881)
• 1819 – Henry J. Gardner, American politician (d. 1892)
• 1820 – John Bartlett, American publisher (d. 1905)
• 1855 – Robert La Follette, American politician (d. 1925)
• 1856 – Andrey Markov, Russian mathematician (d. 1922)
• 1864 – Alois Alzheimer, German physician (d. 1915)
• 1868 – Karl Landsteiner, Austrian biologist and physician, Nobel laureate (d. 1943)
• 1870 – Sophia of Prussia, Prussian-born consort of Constantine I of Greece (d. 1932)
• 1871 – Jacob Ellehammer, Danish inventor (d. 1946)
• 1872 – János Szlepecz, Slovene writer and priest (d. 1936)
• 1877 – Jane Bathori, French mezzo-soprano (d. 1970)
• 1884 – John McCormack, Irish tenor (d. 1945)
• 1890 – May Allison, American actress (d. 1989)
• 1893 – Siggie Nordstrom, Swedish singer (The Nordstrom Sisters) (d. 1980)
• 1894 – Marie-Adélaïde, Grand Duchess of Luxembourg (d. 1924)
• 1895 – Jack Adams, Canadian ice hockey player, coach and general manager (d. 1968)
• 1899 – Yasunari Kawabata, Japanese writer, Nobel laureate (d. 1972)
• 1903 – Alonzo Church, American mathematician and logician (d. 1995)
• 1904 – Margaret Bourke-White, American photojournalist (d. 1971)
• 1905 – Steve Broidy, American motion picture executive (d. 1991)
• 1905 – Arthur Davis, American animator (d. 2000)
• 1907 – Nicolas Bentley, British writer and illustrator (d. 1978)
• 1907 – Chico Landi, Brazilian racing driver (d. 1989)
• 1909 – Burl Ives, American musician (d. 1995)
• 1910 – Rudolf Kempe, German conductor (d. 1976)
• 1913 – Joe Morris, Canadian trade unionist (d. 1996)
• 1914 – Pauline Moore, American actress (d. 2001)
• 1916 – Dorothy McGuire, American actress (d. 2001)
• 1917 – Atle Selberg, Norwegian mathematician (d. 2007)
• 1917 – Lise Nørgaard, Danish journalist and writer
• 1919 – Sam Wanamaker, American actor (d. 1993)
• 1919 – Gene Barry, American actor (d. 2009)
• 1922 – Kevin Roche, Irish architect
• 1924 – James W. Black, British physician (d. 2010)
• 1925 – Pierre Salinger, American journalist; John F. Kennedy's Press Secretary (d. 2004)
• 1926 – Hermann Kant, German author
• 1926 – Don Newcombe, American baseball player
• 1928 – Ernesto "Che" Guevara, Argentine Cuban revolution figure (d. 1967)
• 1929 – Cy Coleman, American composer (d. 2004)
• 1929 – Johnny Wilson, Canadian ice hockey player (d. 2011)
• 1931 – Junior Walker, American saxophonist and singer (Jr. Walker & the All Stars) (d. 1995)
• 1931 – Marla Gibbs, American actress
• 1932 – Joe Arpaio, American law enforcement officer
• 1933 – Jerzy Kosiński, Polish-born American novelist (d. 1991)
• 1933 – Vladislav Rastorotsky, Soviet gymnastics coach
• 1936 – Renaldo "Obie" Benson, American singer (The Four Tops) (d. 2005)
• 1936 – Irmelin Sandman Lilius, Finnish writer
• 1937 – Jørgen Leth, Danish film director
• 1939 – Steny Hoyer, American politician
• 1940 – Jack Bannon, American actor
• 1943 – Barry Burman, English figurative artist (d. 2001)
• 1943 – John Miles, British racing driver
• 1943 – Spooner Oldham, American musician
• 1943 – Harold Wheeler, American composer
• 1944 – Laurie Colwin, American author (d. 1992)
• 1944 – Joe Grifasi, American actor
• 1945 – Rod Argent, English musician (The Zombies, Argent)
• 1945 – Marilyn Schreffler, American voice actor (d. 1988)
• 1946 – Donald Trump, American businessman and entrepreneur
• 1947 – Barry Melton, American guitarist (Country Joe and the Fish)
• 1947 – Hiroshi Miyauchi, Japanese actor
• 1948 – Laurence Yep, American author
• 1949 – Jim Lea, British musician (Slade)
• 1949 – Harry Turtledove, American novelist
• 1949 – Alan White, British drummer (Yes)
• 1950 – Rowan Williams, Welsh Archbishop of Canterbury
• 1951 – Paul Boateng, British politician
• 1952 – Pat Summitt, American basketball coach
• 1952 – Leon Wieseltier, American writer
• 1953 – Janet Mackey, New Zealand politician
• 1953 – David Thomas, American singer, songwriter, and musician (Rocket from the Tombs, Pere Ubu)
• 1954 – Will Patton, American actor
• 1955 – Michael D. Duvall, American state politician
• 1955 – Paul O'Grady, British comedian and television presenter
• 1956 – King Diamond, Danish singer (King Diamond, Mercyful Fate)
• 1956 – Fred Funk, American golfer
• 1956 – Gianna Nannini, Italian singer
• 1956 – Sam Irvin, American director and producer
• 1957 – Maxi Jazz, British rapper (Faithless) and racing driver
• 1957 – Suzanne Nora Johnson, American corporate executive
• 1958 – Eric Heiden, American speed skater
• 1959 – Marcus Miller, American jazz bassist and clarinetist
• 1960 – Mike Laga, American baseball player
• 1961 – Boy George, British singer (Culture Club)
• 1961 – Koja, Serbian musician (Šarlo aktobata, Disciplina kičme)
• 1961 – Sam Perkins, American basketball player
• 1964 – Peter Gilliver, English lexicographer
• 1966 – Matt Freeman, American musician
• 1966 – Traylor Howard, American actress
• 1967 – Dedrick Dodge, American football player
• 1968 – Yasmine Bleeth, American actress
• 1968 – Campbell Brown, American journalist
• 1968 – Faizon Love, American actor
• 1968 – Eric Murdock, American basketball player
• 1968 – Moses Scurry, American basketball player
• 1969 – Éric Desjardins, Canadian hockey player
• 1969 – Michael Gerber, American parodist
• 1969 – Steffi Graf, German tennis player
• 1969 – Kyle Hebert, American voice actor
• 1969 – MC Ren, American rapper
• 1971 – Bruce Bowen, American basketball player
• 1971 – Ramon Vega, Swiss footballer
• 1972 – Matthias Ettrich, German computer scientist (KDE)
• 1972 – Rick Brunson, American basketball player
• 1972 – Michael Cade, American actor
• 1972 – Shaun Keaveny, British radio DJ
• 1973 – Sami Kapanen, Finnish hockey player
• 1973 – Svetlana Ražnatović, Serbian singer
• 1974 – Jang Jin-young, South Korean actress (d. 2009)
• 1974 – Joshua Radin, American songwriter
• 1974 – Phillip Rhys, British actor
• 1975 – Ryuji Miki, Japanese racing driver
• 1975 – Bob Nanna, American musician (Braid, Hey Mercedes, The City on Film)
• 1975 – Chris Onstad, American cartoonist
• 1976 – Alan Carr, British stand-up comedian and TV presenter
• 1976 – Massimo Oddo, Italian footballer
• 1977 – Chris McAlister, American football player
• 1977 – Massimiliano Neri, Italian supermodel
• 1978 – Steve Bégin, French-Canadian hockey player
• 1978 – Diablo Cody, American screenwriter
• 1978 – Annia Hatch, Cuban-American gymnast
• 1981 – Lonneke Engel, Dutch model
• 1981 – Chauncey Leopardi, American actor
• 1982 – Jamie Green, British racing driver
• 1982 – Lang Lang, Chinese pianist
• 1983 – Hirofumi Araki, Japanese actor
• 1983 – Louis Garrel, French actor
• 1983 – J.R. Martinez, American actor and soldier
• 1983 – John Stocco, American football player
• 1984 – Siobhán Donaghy, British singer (Sugababes)
• 1984 – Lorenzo Booker, American football player
• 1984 – Yury Prilukov, Russian swimmer
• 1985 – Andy Soucek, Spanish racing driver
• 1986 – Jonathan Clare, English cricketer
• 1986 – Matt Read, Canadian ice hockey player
• 1987 – Andrew Cogliano, Canadian ice hockey player
• 1988 – Kevin McHale, American singer and actor
• 1989 – Lucy Hale, American actress
• 1989 – Courtney Halverson, American actress
• 1991 – Kostas Manolas, Greek footballer
• 1992 – Daryl Sabara, American actor

Deaths[link]

• 1161 – Emperor Qinzong of China (b. 1100)
• 1381 – Simon Sudbury, Archbishop of Canterbury (birth year unknown)
• 1497 – Giovanni Borgia, Duke of Gandia (b. 1474)
• 1544 – Antoine, Duke of Lorraine (b. 1489)
• 1548 – Carpentras, French composer (b. c. 1470)
• 1594 – Orlande de Lassus, Flemish composer (b. c. 1532)
• 1662 – Henry Vane the Younger, English Governor of Massachusetts Bay Colony and English Commonwealth Parliamentary leader (b. 1613)
• 1674 – Marin le Roy de Gomberville, French writer (b. 1600)
• 1703 – Jean Herauld Gourville, French adventurer (b. 1625)
• 1794 – Francis Seymour-Conway, 1st Marquess of Hertford, Viceroy of Ireland (b. 1718)
• 1800 – Louis Charles Antoine Desaix, French military leader (b. 1768)
• 1800 – Jean-Baptiste Kleber, French general (b. 1753)
• 1801 – Benedict Arnold, general and traitor in the American Revolution.
• 1825 – Pierre Charles L'Enfant, French architect (b. 1754)
• 1837 – Giacomo Leopardi, Italian writer (b. 1798)
• 1883 – Edward FitzGerald, English poet (b. 1809)
• 1886 – Alexander Ostrovsky, Russian dramatist (b. 1823)
• 1907 – William Le Baron Jenny, American engineer and architect (b. 1832)
• 1908 – Frederick Arthur Stanley, British Governor general of Canada (b. 1841)
• 1914 – Adlai Stevenson I, American politician, 23rd U.S. Vice President (b. 1835)
• 1916 – João Simões Lopes Neto, Brazilian writer (b. 1865)
• 1920 – Max Weber, German sociologist (b. 1864)
• 1926 – Mary Cassatt, American artist (b. 1843)
• 1927 – Ottavio Bottecchia, Italian cyclist (b. 1894)
• 1927 – Jerome K. Jerome, British author (b. 1859)
• 1928 – Emmeline Pankhurst, British feminist (b. 1857)
• 1932 – Dorimène Roy Desjardins, Canadian business pioneer (b. 1858)
• 1936 – G. K. Chesterton, English writer (b. 1874)
• 1936 – Hans Poelzig, German architect (b. 1869)
• 1946 – John Logie Baird, Scottish television pioneer (b. 1888)
• 1967 – Eddie Eagan, American sportsman (b. 1897)
• 1968 – Salvatore Quasimodo, Italian writer, Nobel Laureate (b. 1901)
• 1975 – Pablo Antonio, Filipino modernist architect (b. 1902)
• 1977 – Robert Middleton, American actor (b. 1911)
• 1979 – Ahmad Zahir, Afghan singer and composer (b. 1946)
• 1986 – Jorge Luis Borges, Argentine writer (b. 1899)
• 1986 – Alan Jay Lerner, American composer (b. 1918)
• 1990 – Erna Berger, German soprano (b. 1900)
• 1991 – Dame Peggy Ashcroft, British actress (b. 1907)
• 1994 – Henry Mancini, American composer (b. 1924)
• 1994 – Marcel Mouloudji, French singer and actor (b. 1922)
• 1995 – Rory Gallagher, Irish guitarist (b. 1949)
• 1995 – Roger Zelazny, American fantasy and science fiction writer (b. 1937)
• 1997 – Richard Jaeckel, American actor (b. 1926)
• 1999 – Bernie Faloney, American professional football player (b. 1932)
• 2000 – Attilio Bertolucci, Italian poet and writer (b. 1911)
• 2002 – June Jordan, American writer and teacher (b. 1936)
• 2003 – Dale Whittington, American racing driver (b. 1959)
• 2004 – Ulrich Inderbinen, Swiss mountain guide (b. 1900)
• 2004 – Eamonn McGirr, Irish-born singer and entertainer
• 2005 – Carlo Maria Giulini, Italian conductor (b. 1914)
• 2005 – Mimi Parent, Canadian painter (b. 1924)
• 2006 – Jean Roba, Belgian comics author (b. 1930)
• 2006 – Monty Berman, British film and television producer (b. 1905)
• 2007 – Ruth Graham, China-born wife of Billy Graham (b. 1920)
• 2007 – Robin Olds, American fighter pilot (b. 1922)
• 2007 – Kurt Waldheim, Austrian politician and statesman (b. 1918)
• 2008 – Jamelão, Brazilian samba singer (b. 1913)
• 2008 – Esbjörn Svensson, Swedish jazz pianist (b. 1964)
• 2009 – Bob Bogle, American bassist and guitarist (The Ventures) (b. 1934)
• 2009 – Ivan Della Mea, Italian singer-songwriter (b. 1940)

Holidays and observances[link]

• Christian Feast Day:
  • Elisha
  • Methodios I of Constantinople
  • June 14 (Eastern Orthodox liturgics)

• Flag Day (United States)
• Freedom Day (Malawi)
• Liberation Day (Falkland Islands and South Georgia and the South Sandwich Islands)
• Mourning and Commemoration Day or Leinapäev (Estonia)
• Mourning and Hope Day in Lithuania.
• Women's Day (Iraq)
• World Blood Donor Day (International observance)

External links[link]

Wikimedia Commons has media related to: June 14

• BBC: On This Day
• The New York Times: On This Day
• On This Day in Canada

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Joseph Stiglitz ForMemRS FBA
17th Chair of the Council of Economic Advisors
In office June 28, 1995 – February 13, 1997
President	Bill Clinton
Preceded by	Laura Tyson
Succeeded by	Janet Yellen
World Bank Chief Economist
In office 1997–2000
Preceded by	Michael Bruno
Succeeded by	Nicholas Stern
Personal details
Born	(1943-02-09) February 9, 1943 (age 69) Gary, Indiana
Political party	Democratic
Spouse(s)	Anya Schiffrin
Alma mater	Amherst College Massachusetts Institute of Technology
Profession	Economist

Joseph Eugene Stiglitz, ForMemRS, FBA, (born February 9, 1943) is an American economist and a professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is also the former Senior Vice President and Chief Economist of the World Bank. He is known for his critical view of the management of globalization, free-market economists (whom he calls "free market fundamentalists") and some international institutions like the International Monetary Fund and the World Bank.

In 2000, Stiglitz founded the Initiative for Policy Dialogue (IPD), a think tank on international development based at Columbia University. Since 2001, he has been a member of the Columbia faculty, and has been a University Professor since 2003. He also chairs the University of Manchester's Brooks World Poverty Institute and is a member of the Pontifical Academy of Social Sciences. Stiglitz is an honorary doctor of Durham Business School,^[1] an honorary doctor at the Charles University, an honorary professor at Tsinghua University School of Public Policy and Management and a member of the Executive and Supervisory Committee (ESC)^[2] of CERGE-EI in Prague. Stiglitz is one of the most frequently cited economists in the world.^[3]

Biography[link]

Stiglitz was born in Gary, Indiana, to Jewish parents, Charlotte and Nathaniel Stiglitz. From 1960 to 1963, he studied at Amherst College, where he was a highly active member of the debate team and President of the Student Government. He went to the Massachusetts Institute of Technology (MIT) for his fourth year as an undergraduate, where he later pursued graduate work. His undergraduate degree was awarded from Amherst College. From 1965 to 1966, he moved to the University of Chicago to do research under Hirofumi Uzawa who had received an NSF grant. He studied for his PhD from MIT from 1966 to 1967, during which time he also held an MIT assistant professorship. Stiglitz stated that the particular style of MIT economics suited him well - simple and concrete models, directed at answering important and relevant questions.^[4] From 1966 to 1970 he was a research fellow at the University of Cambridge: he arrived at Fitzwilliam House as a Fulbright Scholar in 1965 and then won a Tapp Junior Research Fellowship at Gonville and Caius College.^[5] In subsequent years, he held academic positions at Yale, Stanford, Duke, Oxford, and Princeton.^[6] Stiglitz is now a Professor at Columbia University, with appointments at the Business School, the Department of Economics and the School of International and Public Affairs (SIPA), and is editor of The Economists' Voice journal with J. Bradford DeLong and Aaron Edlin. He also gives classes for a double-degree program between Sciences Po Paris and École Polytechnique in 'Economics and Public Policy'. As of 2005 he chairs The Brooks World Poverty Institute at the University of Manchester.^[7][8] Stiglitz is a New-Keynesian economist.^[9][10]

In addition to making numerous influential contributions to microeconomics, Stiglitz has played a number of policy roles. He served in the Clinton Administration as the chair of the President's Council of Economic Advisors (1995 – 1997). At the World Bank, he served as Senior Vice President and Chief Economist (1997 – 2000), in the time when unprecedented protest against international economic organizations started, most prominently with the Seattle WTO meeting of 1999. He was fired by the World Bank for expressing dissent with its policies.^[11] He was a lead author for the Intergovernmental Panel on Climate Change.

He is a member of Collegium International, an organization of leaders with political, scientific, and ethical expertise whose goal is to provide new approaches in overcoming the obstacles in the way of a peaceful, socially just and an economically sustainable world. He is also a member of the scientific committee of the Fundacion IDEAS, a Spanish think tank.^[12]

Stiglitz has advised American President Barack Obama, but has also been sharply critical of the Obama Administration's financial-industry rescue plan.^[13] Stiglitz said that whoever designed the Obama administration's bank rescue plan is "either in the pocket of the banks or they’re incompetent."^[14]

In October 2008 he was asked by the President of UN's General Assembly to chair a commission entrusted with drafting a report on the reasons for and solutions to the financial crisis.^[15] In response, the commission produced the Stiglitz Report.

On July 25, 2011, Stiglitz participated to the "I Foro Social del 15M" organized in Madrid (Spain) expressing his support to the 2011 Spanish protests.^[16]

In 2011, he was named by Foreign Policy magazine on its list of top global thinkers.^[17]

Contributions to economics[link]

Stiglitz at a conference in Mexico in 2009.

Information asymmetry[link]

This section cites its sources but does not provide page references. You can help to improve it by introducing citations that are more precise.

Stiglitz's most famous research was on screening, a technique used by one economic agent to extract otherwise private information from another. It was for this contribution to the theory of information asymmetry that he shared the Nobel Memorial Prize in Economics^[4] in 2001 "for laying the foundations for the theory of markets with asymmetric information" with George A. Akerlof and A. Michael Spence.

Before the advent of models of imperfect and asymmetric information, the traditional neoclassical economics literature had assumed that markets are efficient except for some limited and well defined market failures. More recent work by Stiglitz and others reversed that presumption, to assert that it is only under exceptional circumstances that markets are efficient. Stiglitz has shown (together with Bruce Greenwald) that "whenever markets are incomplete and/or information is imperfect (which are true in virtually all economies), even competitive market allocation is not constrained Pareto efficient". In other words, they addressed "the problem of determining when tax interventions are Pareto-improving. The approach indicates that such tax interventions almost always exist and that equilibria in situations of imperfect information are rarely constrained Pareto optima."^{[18]:229, abstract} Although these conclusions and the pervasiveness of market failures do not necessarily warrant the state intervening broadly in the economy, it makes clear that the "optimal" range of government recommendable interventions is definitely much larger than the traditional "market failure" school recognizes.^[19] For Stiglitz, there is no such thing as an invisible hand.^[20] According to Stiglitz:^[21]

Whenever there are "externalities"—where the actions of an individual have impacts on others for which they do not pay or for which they are not compensated—markets will not work well. But recent research has shown that these externalities are pervasive, whenever there is imperfect information or imperfect risk markets—that is always. The real debate today is about finding the right balance between the market and government. Both are needed. They can each complement each other. This balance will differ from time to time and place to place.

In the opening remarks for his prize acceptance "Aula Magna",^[22] Stiglitz said:^[23]

I hope to show that Information Economics represents a fundamental change in the prevailing paradigm within economics. Problems of information are central to understanding not only market economics but also political economy, and in the last section of this lecture, I explore some of the implications of information imperfections for political processes.

In an interview in 2007, Stiglitz explained further:^[24]

The theories that I (and others) helped develop explained why unfettered markets often not only do not lead to social justice, but do not even produce efficient outcomes. Interestingly, there has been no intellectual challenge to the refutation of Adam Smith's invisible hand: individuals and firms, in the pursuit of their self-interest, are not necessarily, or in general, led as if by an invisible hand, to economic efficiency.

Efficiency wages: the Shapiro-Stiglitz model[link]

In the Shapiro-Stiglitz model of efficiency wages, workers are paid at a level that dissuades shirking. This prevents wages from dropping to market clearing levels. Full employment cannot be achieved because workers would shirk if they were not threatened with the possibility of unemployment. Because of this, the curve for the no-shirking condition (labeled NSC) goes to infinity at full employment.

Stiglitz also did research on efficiency wages, and helped create what became known as the "Shapiro-Stiglitz model" to explain why there is unemployment even in equilibrium, why wages are not bid down sufficiently by job seekers (in the absence of minimum wages) so that everyone who wants a job finds one, and to question whether the neoclassical paradigm could explain involuntary unemployment.^[25] The answer to these puzzles was proposed by Shapiro and Stiglitz in 1984: "Unemployment is driven by the information structure of employment".^[25] Two basic observations undergird their analysis:

1. Unlike other forms of capital, humans can choose their level of effort.
2. It is costly for firms to determine how much effort workers are exerting.

A full description of this model can be found at the links provided.^[26] Some key implications of this model are:

1. Wages do not fall enough during recessions to prevent unemployment from rising. If the demand for labour falls, this lowers wages. But because wages have fallen, the probability of 'shirking' (workers not exerting effort) has risen. If employment levels are to be maintained, through a sufficient lowering of wages, workers will be less productive than before through the shirking effect. As a consequence, in the model wages do not fall enough to maintain employment levels at the previous state, because firms want to avoid excessive shirking by their workers. So, unemployment must rise during recessions, because wages are kept 'too high'.
2. Possible corollary: Wage sluggishness. Moving from one private cost of hiring <w∗> to another private cost of hiring <w∗∗> will require each firm to repeatedly re-optimize wages in response to shifting unemployment rate. Firms cannot cut wages until unemployment rises sufficiently (a coordination problem).

The outcome is never Pareto efficient.

1. Each firm employs too few workers because it faces private cost of hiring rather than the social cost — which is equal to and in all cases. This means that firms do not "internalize" the "external" cost of unemployment - they do not factor how large-scale unemployment harms society when assessing their own costs. This leads to a negative externality as marginal social cost exceeds the firm's marginal cost (MSC = Firm's Private Marginal Cost + Marginal External Cost of increased social unemployment)^{[clarification needed]}
2. There are also negative externalities. Each firm increases the asset value of unemployment <Vu> for all other firms by hiring.^{[clarification needed]} But the first problem clearly dominates since the 'natural rate of unemployment' is always too high.

Some possible practical implications of Stiglitz theorems[link]

While the mathematical validity of Stiglitz et al. theorems are not in question, their practical implications in political economy and their application in real life economic policies have been subject to considerable disagreement and debate.^[27] Stiglitz himself seems to be continuously adapting his own political-economic discourse,^[28] as we can see from the evolution in his positions as initially stated in Whither Socialism? (1994) to his own new positions held on his most recent publications.

Once incomplete and imperfect information are introduced, Chicago-school defenders of the market system cannot sustain descriptive claims of the Pareto efficiency of the real world. Thus, Stiglitz's use of rational-expectations equilibrium assumptions to achieve a more realistic understanding of capitalism than is usual among rational-expectations theorists leads, paradoxically, to the conclusion that capitalism deviates from the model in a way that justifies state action—socialism—as a remedy.^[29]

The effect of Stiglitz's influence is to make economics even more presumptively interventionist than Samuelson preferred. Samuelson treated market failure as the exception to the general rule of efficient markets. But the Greenwald-Stiglitz theorem posits market failure as the norm, establishing "that government could potentially almost always improve upon the market's resource allocation." And the Sappington-Stiglitz theorem "establishes that an ideal government could do better running an enterprise itself than it could through privatization"^[30] (Stiglitz 1994, 179).^[29]

The objections to the wide adoption of these positions suggested by Stiglitz's discoveries do not come from economics itself but mostly from political scientists and are in the fields of sociology. As David L. Prychitko discusses in his "critique" to Whither Socialism? (see below), although Stiglitz's main economic insight seems generally correct, it still leaves open great constitutional questions such as how the coercive institutions of the government should be constrained and what the relation is between the government and civil society.^[31]

Government[link]

Clinton administration, 1993–1997[link]

Stiglitz joined the Clinton Administration in 1993,^[32] serving first as a member during 1993-1995, and then appointed Chairman of the Council of Economic Advisers on June 28, 1995, in which capacity he also served as a member of the cabinet. He became deeply involved in environmental issues, which included serving on the Intergovernmental Panel on Climate Change, and helping draft a new law for toxic wastes (which was never passed).

Stiglitz's most important contribution in this period was helping define a new economic philosophy, a "third way", which postulated the important, but limited, role of government, that unfettered markets often did not work well, but that government was not always able to correct the limitations of markets. The academic research that he had been conducting over the preceding 25 years provided the intellectual foundations for this "third way".

When President Bill Clinton was re-elected, he asked Stiglitz to continue to serve as Chairman of the Council of Economic Advisers for another term. But he had already been approached by the World Bank to be its senior vice president for development policy and its chief economist, and he assumed that position after his CEA successor was confirmed on February 13, 1997.

As the World Bank began its ten-year review of the transition of the former Communist countries to the market economy it unveiled failures of the countries that had followed the International Monetary Fund (IMF) shock therapy policies - both in terms of the declines in GDP and increases in poverty - that were even worse than the worst that most of its critics had envisioned at the onset of the transition. Clear links existed between the dismal performances and the policies that the IMF had advocated, such as the voucher privatization schemes and excessive monetary stringency. Meanwhile, the success of a few countries that had followed quite different strategies suggested that there were alternatives that could have been followed. The U.S. Treasury had put enormous pressure on the World Bank to silence his criticisms of the policies which they and the IMF had pursued.^[33][34]

Stiglitz always had a poor relationship with Treasury Secretary Lawrence Summers.^[35] In 2000, Summers successfully petitioned for Stiglitz's removal, supposedly in exchange for World Bank President James Wolfensohn's re-appointment – an exchange that Wolfensohn denies took place. Whether Summers ever made such a blunt demand is questionable – Wolfensohn claims he would "have told him to fuck himself".^[36]

Stiglitz resigned from the World Bank in January 2000, a month before his term expired.^[34] The Bank's president, James Wolfensohn, announced Stiglitz's resignation in November 1999 and also announced that Stiglitz would stay on as "special advisor to the president", and would chair the search committee for a successor.

"Joseph E. Stiglitz said today [Nov. 24, 1999] that he would resign as the World Bank's chief economist after using the position for nearly three years to raise pointed questions about the effectiveness of conventional approaches to helping poor countries."^[37]

In this role, he continued criticism of the IMF, and, by implication, the US Treasury Department. In April 2000, in an article for The New Republic, he wrote:

"They’ll say the IMF is arrogant. They’ll say the IMF doesn’t really listen to the developing countries it is supposed to help. They’ll say the IMF is secretive and insulated from democratic accountability. They’ll say the IMF's economic ‘remedies’ often make things worse – turning slowdowns into recessions and recessions into depressions. And they’ll have a point. I was chief economist at the World Bank from 1996 until last November, during the gravest global economic crisis in a half-century. I saw how the IMF, in tandem with the U.S. Treasury Department, responded. And I was appalled."

The article was published a week before the annual meetings of the World Bank and IMF and provoked a strong response. It proved too strong for Summers and, yet more lethally, Stiglitz's protector-of-sorts at the World Bank, Wolfensohn. Wolfensohn had privately empathised with Stiglitz's views, but this time was worried for his second term, which Summers had threatened to veto.^{[citation needed]} Stanley Fisher, deputy managing director of the IMF, called a special staff meeting and informed at that gathering that Wolfensohn had agreed to fire Stiglitz. Meanwhile, the Bank's External Affairs department told the press that Stiglitz had not been fired, his post had merely been abolished.^[38]

In a September 19, 2008 radio interview with Aimee Allison and Philip Maldari on Pacifica Radio's KPFA 94.1 FM in Berkeley, California, Stiglitz implied that President Clinton and his economic advisors would not have backed the North American Free Trade Agreement (NAFTA) had they been aware of stealth provisions, inserted by lobbyists, that they overlooked.

Initiative for Policy Dialogue[link]

In July 2000 Stiglitz founded the Initiative for Policy Dialogue (IPD), with support of the Ford, Rockefeller, McArthur, and Mott Foundations and the Canadian and Swedish governments, to enhance democratic processes for decision-making in developing countries and to ensure that a broader range of alternatives are on the table and more stakeholders are at the table.

Commission on the Measurement of Economic Performance and Social Progress[link]

At the beginning of 2008, Stiglitz chaired the Commission on the Measurement of Economic Performance and Social Progress, also known as the Stiglitz-Sen-Fitoussi Commission, initiated by President Sarkozy of France. The Commission held its first plenary meeting on 22–23 April 2008 in Paris. Its final report was made public on 14 September 2009.^[39]

Commission of Experts on Reforms of the International Monetary and Financial System[link]

Stiglitz at the World Economic Forum Annual Meeting in Davos, 2009.

In 2009, Stiglitz chaired the Commission of Experts on Reforms of the International Monetary and Financial System which was convened by the President of the United Nations General Assembly "to review the workings of the global financial system, including major bodies such as the World Bank and the IMF, and to suggest steps to be taken by Member States to secure a more sustainable and just global economic order".^[40] Its final report was released on 21 September 2009.^[41][42]

Eurozone crisis[link]

During a 2010 BBC interview, Stiglitz argued that Europe should make a clear statement of belief in social solidarity and that they should 'stand behind Greece'.^{[citation needed]}

In 2012, Stiglitz described the European austerity plans as a "suicide-pact."^[43]

Support to the 2011 Spanish Protests[link]

On July 25, 2011, Stiglitz participated to the "I Foro Social del 15M" organized in Madrid (Spain) expressing his support to the 2011 Spanish protests.^[16] During an informal speech, he made a brief review of some of the problems in Europe and in the United States, the serious unemployment rate and the situation in Greece. "This is an opportunity for economic contribution social measures", argued Stiglitz, who made a critical speech about the way authorities are handling the political exit to the crisis. He encouraged those present to respond to the "bad ideas", not with indifference, but with "good ideas". "This does not work, you have to change it", he said.

Criticism of rating agencies[link]

Stiglitz has been critical of rating agencies describing them as the "key culprit" in the financial crisis noting "they were the party that performed the alchemy that converted the securities from F-rated to A-rated. The banks could not have done what they did without the complicity of the rating agencies."^[44]

Books[link]

Along with his technical economic publications (he has published over 300 technical articles), Stiglitz is the author of books on issues from patent law to abuses in international trade.

[edit] Freefall: America, Free Markets, and the Sinking of the World Economy (2010)

In Freefall: America, Free Markets, and the Sinking of the World Economy, Stiglitz discusses the causes of the 2008 recession/depression and goes on to propose reforms needed to avoid a repetition of a similar crisis, advocating government intervention and regulation in a number of areas. Among the policy-makers he criticises are George W. Bush, Larry Summers, and Barack Obama.^[45]

This book does not require an economics background in order to be of value to the reader. Rather it explains Stiglitz's views on the recent economic crisis in terms which make it relevant to the average homeowner, retirement investor, and voter in the United States. He explains how without fundamental changes in economic policy and regulation the position of the US in the world political and economic arena may deteriorate significantly.

[edit] The Three Trillion Dollar War: The True Cost of the Iraq Conflict (2008)

The Three Trillion Dollar War (co-authored with Linda Bilmes) examines the full cost of the Iraq War, including many hidden costs. The book also discusses the extent to which these costs will be imposed for many years to come, paying special attention to the enormous expenditures that will be required to care for very large numbers of wounded veterans. Stiglitz was openly critical of George W. Bush at the time the book was released.^[46]

[edit] Stability with Growth: Macroeconomics, Liberalization and Development (2006)

In Stability with Growth: Macroeconomics, Liberalization and Development, Stiglitz, José Antonio Ocampo (United Nations Under-Secretary-General for Economic and Social Affairs, until 2007), Shari Spiegel (Managing Director, Initiative for Policy Dialogue - IPD), Ricardo Ffrench-Davis (Main Adviser, Economic Commission for Latin America and the Caribbean - ECLAC) and Deepak Nayyar (Vice Chancellor, University of Delhi) discuss the current debates on macroeconomics, capital market liberalization and development, and develop a new framework within which one can assess alternative policies. They explain their belief that the Washington Consensus has advocated narrow goals for development (with a focus on price stability) and prescribed too few policy instruments (emphasizing monetary and fiscal policies), and places unwarranted faith in the role of markets. The new framework focuses on real stability and long-term sustainable and equitable growth, offers a variety of non-standard ways to stabilize the economy and promote growth, and accepts that market imperfections necessitate government interventions. Policy-makers have pursued stabilization goals with little concern for growth consequences, while trying to increase growth through structural reforms focused on improving economic efficiency. Moreover, structural policies, such as capital market liberalization, have had major consequences for economic stability. This book challenges these policies by arguing that stabilization policy has important consequences for long-term growth and has often been implemented with adverse consequences. The first part of the book introduces the key questions and looks at the objectives of economic policy from different perspectives. The third part presents a similar analysis for capital market liberalization.

[edit] Making Globalization Work (2006)

Making Globalization Work surveys the inequities of the global economy, and the mechanisms by which developed countries exert an excessive influence over developing nations. Dr. Stiglitz argues that through tariffs, subsidies, an over-complex patent system and pollution, the world is being both economically and politically destabilised. Stiglitz argues that strong, transparent institutions are needed to address these problems. He shows how an examination of incomplete markets can make corrective government policies desirable.

Stiglitz is an exception to the general pro-globalization view of professional economists, according to economist Martin Wolf.^[47] Stiglitz argues that economic opportunities are not widely enough available, that financial crises are too costly and too frequent, and that the rich countries have done too little to address these problems. Making Globalization Work^[48] has sold more than two million copies.

[edit] Fair Trade for All (2005)

In Fair Trade for All, authors Stiglitz and Andrew Charlton argue that it is important to make the trading world more development friendly.^[49] The idea is put forth that the present regime of tariffs and agricultural subsidies is dominated by the interests of former colonial powers and needs to change. The removal of the bias toward the developed world will be beneficial to both developing and developed nations. The developing world is in needs of assistance, and this can only be achieved when developed nations abandon mercantilist based priorities and work towards a more liberal world trade regime.^[50]

[edit] New Paradigm for Monetary Economics (2004)

[edit] The Roaring Nineties: A New History of the World's Most Prosperous Decade (2003)

The Roaring Nineties" is Stiglitz' analysis of the boom and bust of the 1990s. Presented from an insider's point of view, firstly as chair of President Clinton's Council of Economic Advisors, and later as chief economist of the World Bank, it continues his argument on how misplaced faith in free-market ideology led to the global economic issues of today, with a perceptive focus on US policies.

[edit] Globalization and Its Discontents (2002)

In Globalization and Its Discontents, Stiglitz argues that what are often called "developing economies" are, in fact, not developing at all, and puts much of the blame on the IMF.

Stiglitz bases his argument on the themes that his decades of theoretical work have emphasized: namely, what happens when people lack the key information that bears on the decisions they have to make, or when markets for important kinds of transactions are inadequate or don't exist, or when other institutions that standard economic thinking takes for granted are absent or flawed. Stiglitz stresses the point: "Recent advances in economic theory" (in part referring to his own work) "have shown that whenever information is imperfect and markets incomplete, which is to say always, and especially in developing countries, then the invisible hand works most imperfectly." As a result, Stiglitz continues, governments can improve the outcome by well-chosen interventions. Stiglitz argues that when families and firms seek to buy too little compared to what the economy can produce, governments can fight recessions and depressions by using expansionary monetary and fiscal policies to spur the demand for goods and services. At the microeconomic level, governments can regulate banks and other financial institutions to keep them sound. They can also use tax policy to steer investment into more productive industries and trade policies to allow new industries to mature to the point at which they can survive foreign competition. And governments can use a variety of devices, ranging from job creation to manpower training to welfare assistance, to put unemployed labor back to work and cushion human hardship.

Stiglitz complains bitterly that the IMF has done great damage through the economic policies it has prescribed that countries must follow in order to qualify for IMF loans, or for loans from banks and other private-sector lenders that look to the IMF to indicate whether a borrower is creditworthy. The organization and its officials, he argues, have ignored the implications of incomplete information, inadequate markets, and unworkable institutions—all of which are especially characteristic of newly developing countries. As a result, Stiglitz argues, the IMF has often called for policies that conform to textbook economics but do not make sense for the countries to which the IMF is recommending them. Stiglitz seeks to show that these policies have been disastrous for the countries that have followed them.

[edit] Whither Socialism?

Whither Socialism? is based on Stiglitz's Wicksell Lectures, presented at the Stockholm School of Economics in 1990 and presents a summary of information economics and the theory of markets with imperfect information and imperfect competition, as well as being a critique of both free market and market socialist approaches (see Roemer critique, op. cit.). Stiglitz explains how the neoclassical, or Walrasian model ("Walrasian economics" refers to the result of the process which has given birth to a formal representation of Adam Smith's notion of the "invisible hand", along the lines put forward by Léon Walras and encapsulated in the general equilibrium model of Arrow-Debreu), may have wrongly encouraged the belief that market socialism could work. Stiglitz proposes an alternative model, based on the information economics established by the Greenwald-Stiglitz theorems.

One of the reasons Stiglitz sees for the critical failing in the standard neoclassical model, on which market socialism was built, is its failure to consider the problems that arise from lack of perfect information and from the costs of acquiring information. He also identifies problems arising from its assumptions concerning completeness.^[51]

Papers and conferences[link]

Stiglitz wrote a series of papers and held a series of conferences explaining how such information uncertainties may have influence on everything from unemployment to lending shortages. As the chairman of the Council of Economic Advisers during the first term of the Clinton Administration and former chief economist at the World Bank, Stiglitz was able to put some of his views into action. For example, he was an outspoken critic of quickly opening up financial markets in developing countries. These markets rely on access to good financial data and sound bankruptcy laws, but he argued that many of these countries didn't have the regulatory institutions needed to ensure that the markets would operate soundly.

He co-authored a paper titled "Implications of the New Fannie Mae and Freddie Mac Risk-Based Capital Standard" with Peter Orszag in 2002 in which they concluded "on the basis of historical experience, the risk to the government from a potential default on GSE debt is effectively zero."^[52]

Private life[link]

Stiglitz married for the third time on October 28, 2004, to Anya Schiffrin, who works at the School of International and Public Affairs at Columbia University.^{[citation needed]}