Review

"The Age of Diminished Expectations is a remarkable achievement, a quick read that tells you much of what there is to know about the great economic issues of the day," the NY Times Book Review says about this read. This book is a wonderful primer for those looking to gain a better grasp of the US economy, how it works, how civilization advances, and the impact political decisions have on our lives.  Krugman's style of writing makes the work more than just an interesting book; it becomes a captivating tale of the US Economy.

The Age of Diminished Expectations offers readers a clear understanding of topics such as international finance, even if a reader lacks previous exposure to the subject.  What makes the book more worthwhile is the fact that Krugman is never without an example to put even difficult concepts within reach. Basic economic ideas such as productivity, inflation, and monetary policy are not only brought out into the light, but shown from both liberal and conservative perspectives.

Krugman is able to take textbook information and present the controversial viewpoints to show what motivates economists to believe certain forms of "pseudo-economics."  He classifies economists who don't follow academic principles, particularly those who refer to the international economy, as pop-internationalists.  For a more detailed review of his thoughts on the subject see his other works. Paul Krugman provides readers with a sound introduction to economics, which should serve as an excellent starting point for anybody hoping to gain insight into what real economists think about today's important issues.

Contents: The Age of Diminished Expectations: U.S. Economic Policy in the 1990's

I. The Roots of Economic Welfare

a. Productivity Growth
b. Income Distribution
c. Employment and Unemployment

II. Chronic Aches and Pains

a. The Trade Deficit
b. Inflation

III. Policy Problems

a. Health Care
b. The Budget Deficit
c. The Embattled Fed
d. The Dollar
e. Free Trade and Protectionism
f. Japan

IV. Financial Follies

a. The Savings and Loan Scandal
b. Losing It
c. Global Finance

V. American Prospects

a. Happy Ending
b. Hard Landing
c. Drift