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The rapid collapse of socialism has raised new economic policy questions and revived old theoretical issues. In this book, Joseph Stiglitz explains how the neoclassical model not only may have provided an inadequate framework for understanding market economies but may have wrongly encouraged the belief that market socialism could work. Stiglitz proposes an alternative model, based on the economics of information, that provides greater theoretical insight into the workings of a market economy and clearer guidance for the setting of policy in transitional economies.
Author Biography
Joseph Stiglitz, a 2001 Nobel Laureate, is University Professor at Columbia University.
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