In an interview with Bloomberg, Joseph Stiglitz talks about the risk of a recession in Europe and fiscal policy. He speaks from Helsinki with Francine Lacqua.

Few of Stiglitz quotes:

“There is significant likelihood that Europe will face a recession.”

“At the beginning, they took away two important mechanisms of adjustment – the interest rate and exchange rate”

“There has to be a creation of new fiscal frameworks, a solidarity fund for growth and stability, European bonds, something along those lines has to be done”

video of interview is embedded below: