The Return of Depression Economics and the Crisis of 2008

The Return of Depression Economics and the Crisis of 2008

3.4 42
by Paul Krugman
     
 

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ISBN-10: 0393337804

ISBN-13: 9780393337808

Pub. Date: 09/08/2009

Publisher: Norton, W. W. & Company, Inc.

The New York Times bestseller: the Nobel Prize–winning economist shows how today’s crisis parallels the Great Depression—and explains how to avoid catastrophe. With a new foreword for this paperback edition.
In this major bestseller, Paul Krugman warns that, like diseases that have become resistant to antibiotics, the economic maladies that

Overview

The New York Times bestseller: the Nobel Prize–winning economist shows how today’s crisis parallels the Great Depression—and explains how to avoid catastrophe. With a new foreword for this paperback edition.
In this major bestseller, Paul Krugman warns that, like diseases that have become resistant to antibiotics, the economic maladies that caused the Great Depression have made a comeback. He lays bare the 2008 financial crisis—the greatest since the 1930s—tracing it to the failure of regulation to keep pace with an out-of-control financial system. He also tells us how to contain the crisis and turn around a world economy sliding into a deep recession. Brilliantly crafted in Krugman’s trademark style—lucid, lively, and supremely informed—this new edition of The Return of Depression Economics has become an instant classic. A hard-hitting new foreword takes the paperback edition right up to the present moment.

Product Details

ISBN-13:
9780393337808
Publisher:
Norton, W. W. & Company, Inc.
Publication date:
09/08/2009
Edition description:
Reprint
Pages:
224
Sales rank:
201,944
Product dimensions:
5.50(w) x 8.10(h) x 0.60(d)

Table of Contents

Introduction.......................................................vii
one July 1, 1997....................................................1
two A Short Course in Miracles: Asia before the Crisis.............21
three Warning Ignored: Latin America, 1995.........................38
four The Future That Didn't Work: Japan in the 1990s...............60
five All Fall Down: Asia's Crash...................................83
six The Confidence Game...........................................102
seven Masters of the Universe: Hedge Funds and Other Villains.....118
eight Bottoming Out?..............................................137
nine The Return of Depression Economies...........................154
Index..............................................................169

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The Return of Depression Economics and the Crisis of 2008 3.4 out of 5 based on 0 ratings. 42 reviews.
Daniel_Bates More than 1 year ago
Nearly a decade ago, Paul Krugman released the first edition of "The Return of Depression Economics," a book that took a close look at the economic crises in Asia and South America. Then he suggested that we were threatened to return to the economic conditions that caused the Great Depression. Since that time, Wall Street and our economy cooked (minus a minor recession) and people forgot all about his book.

Now that the housing bubble burst and the mortgage and subsequent financial crises have taken hold, Krugman created an updated edition of his original book. It's true that the book is greatly updated with lots of new content including:

~ The failure of regulation to keep pace with an increasingly out-of-control financial system
~ Steps that must be taken to contain the crisis (a rarity in the spate of books coming forth in response to the failing economy)

All in all, this book has its place in our analysis of the crisis and some of his suggestions for moving forward are good ones. His writing style is clever and well-informed.

Another book I recommend strongly that has been a tremendous help to me in dealing with the financial crisis and the mounting stress at work is The Emotional Intelligence Quick Book
Willp More than 1 year ago
Paul Krugman is a professor of economics and international affairs at Princeton University. This is an update of his 1999 book. Alan Greenspan, when Chairman of the Federal Reserve, said that a fall in house prices was 'most unlikely' and, "not only have financial institutions become less vulnerable to shocks from underlying risk factors, but also the financial system as a whole has become more resilient." Robert Lucas, a Nobel-Prize winning economist, said, "the central problem of depression-prevention has been solved." Chairman of the Federal Reserve Ben Bernanke said there would be no more boom and bust. Inflated reputations, supply-side economics, free market policies, are all as bankrupt as the banks they serve. The misbegotten need to 'win the markets' confidence' pushes countries to make slumps worse by cutting demand as Hoover did in the Great Depression, by cutting spending and raising taxes. Yet the IMF still tells countries to do this. After the Great Depression, banks and international capital flows, which had played such a destructive role, were both tightly regulated. But, "Growing international capital flows set the stage for devastating currency crises in the 1990s and for a global financial crisis in 2008." But with financial globalisation, highly-leveraged financial institutions hold large stakes abroad, which are transmission belts for crises. The 'solution' of maximum integration into global capitalism turns out to be the cause of the crisis. Krugman notes that after Japan's 1991 slump, its government tried zero interest rates, public works programmes, inflation, printing money, building up foreign exchange reserves, export drives to the USA, a $500 billion bank bail out in 1998 - nothing worked. The present crisis combine a burst real estate bubble and a liquidity trap (like Japan in the 1990s), bank runs (like the 1930s), and currency crises (like Asia in the 1990s), adding up to a global slump. Krugman admits that we need 'long-term restrictions on international capital flows, not just temporary controls in times of crisis'. But there is no solution to capitalism's absolute decline within capitalism, unless you count war as a solution. No capitalist plan works: in each country, only the working class can build recovery.
ChrisMarlowe More than 1 year ago
I am usually by no means interested, little less excited by a book on economics. But, Mr. Krugman breaks the current situtation down into terms the most would understand, and uses descriptive and relevent examples of how economies work in general. Paul Krugman relates in an understandable manner the emerging ties between economies in other countries, and especially those countries that have had problems in recent memory such the downturn of the asian markets in the late 1990's. His recommendations at the end of the book are interesting and intellectual stimulating. If you want a better understanding of the United States current economic sitatution, its relation to global economies, and the unique steps that need to be taken by each government, this a book you can't miss. I gave several as gifts for christmas this past holiday season.
Ginger--SJ More than 1 year ago
Once again, Paul Krugman has managed to present a subject which few have the training for into a very readable presentation of the economic crisis we are facing. Although I have a major in Economics (and have taught this at the High School level), I also analyze how readable or interesting this would be to others who do not have this background. It is obvious why Paul Krugman was chosen for the Nobel prize in Economics!! BRAVO!!
Anonymous More than 1 year ago
I found, "The Return of Depression Economics" to be enlightening. I had no idea that inflation could be a 'good thing', but know, understand at the right time and right place it can actually be helpful. I have a better understanding of mortgage backed securities, hedge funds and other investment vehicles and how they could spiral down in value so quickly. Finally, I have some perspective on the economic disasters that faced other nations over the past 80 years and how they dealt with them. Can¿t ask much more than that from 191 pages.
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Corvette98 More than 1 year ago
Takes what can be very dry and confusing to many and makes it understanable to all. Really hits the mark on the current economic situation. Should be required reading by all.