The Return of Depression Economics and the Crisis of 2008
First it was Asia, in July 1997, when a series of event led to the collapse of six economies including Japan. Then came the failure of the Russian economy, followed by the Federal Reserve Board's ba...more
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Very interesting as well is the way that he deals with "moral hazard" not making judgments but allowing the reader to determine if this is a factor in causing fiscal chaos or not. How much ...more
From 1953 to 1973, Japan stunned the world wi ...more
This book was really looking at the Asian Financial Crisis, but has been updated to include information on the GFC of 2008.
The most interesting parts of the book relate to the need to re-regulate the financial s ...more
Most of the book is just background of various financial crises of the past 100 years. Of course in hindsight, Krugman in all his wisdom can see how if the different parties in the crises had just done what he thinks they should have, everything would have turned out fine. I'm not an economist, so I can't really argue intelligently about his conclusions. M ...more
Krugman uses the example of a baby-sitting co-op to illustrate how money supply and inflation play their part in financial booms and busts. He also provides solutions on how the simp ...more
Krugman strikes a fine balance between simplifying global investment banking and unloading the economist jargon. In order to explain the basic characteristics of a recession (and several other market fluctuations) he uses t ...more
This book was very readable. Paul Krugman does a great job providing simple, succinct, easy-to-understand explanations of economic ideas and also to-the-point, in-a-nutshell historical information. I haven't yet found anything of his a slog to read, which I do appreciate.
His main thesis seems to be that economists don't know as much as they thought they did, and the profession needs to ditch the fa ...more
Krugman, the mouthpiece for liberal inflationary economics, is often touted for his "Nobel Prize" which is actually specific to international trade. What stands out when you read his books is that his "solutions" always include examples that didn ...more
...which is honestly pretty appropriate, considering the utte ...more
It really makes your brain spin to think about the complexities of our truly global financial system. Currency speculators, bank lenders, governments of nations large and small, flip-flopping exchange rates and seemingly arbitrary interest rates. WHEW!! This book is a good argument for living simply and not investing money you can't afford to lose.
It's unsettling to think of the relative "handful" of people who have ...more
I was struck by the following passage, in which Krugman wrote about the decline of mainstream socialist thought. Though "socialism" remains the right's favorite bugbear, Krugman captures the reality in American life pretty succinctly, for better or for worse.
"But who can now use the words of socialism with a straight face? As a member of the baby boo ...more
Fighting a depression governments will: lower interest rates, lower taxes, increase government spending (Spend).
You can only have two of three following: Low interest rates, stable currency, freedom from interfering with private business.
Liquidity Trap=no one spending any money. Monetary policy could lower interests rates. But what to do when this doesn’t work? Expected inflation could also be used to encourage spending.
Supply side: Prices will fall enough to a poin ...more
So now I have to start all over again.
Basically the gist of what I said was Krugman presents a decent argument here that regulation oversight and the lack of regulating risky off-balance sheet activities got us in the mess in the first place.
And that it has happened before in the form of bank runs and bank failures.
He is also pretty ...more
The author takes readers through a hypothesis based analysis to reach a conclusion about return of depression economics, he analyze various economic crises around the world over the last half century, each crises with specific reasons and various outcomes - leading to the world's economic situation post 2008 financial crises, then delivering future outlook, its challenges as well as suggested methods to overcome predicted crises.
The solutions he presents, however, are anything but objective.
If he was able to look past his limited scope of his theories, he might see that the solutions he presents are merely band aids for a broken system. He even references this broken system argument near ...more