 |
Return of Depression Economics by Paul Krugman Buy it online at Amazon |
Post your own
review of this book. Click here.
|
Review
Paul Krugman's latest book contains the same sharp wit and keen common sense that his faithful fans have grown accustomed to in his readings. He presents clear argument after argument detailing the problems that face nations dealing with speculators and currency issues that plague central bankers. For good measure, Krugman, a history buff in his studies at Yale, guides readers through the timeline of the events which brought about the end (or perhaps a brief pause, only time will tell) of the "Asian tigers" and their "miracle economies." He also explains what the Mexican Financial Crisis of 1995 should have taught us before we experienced the Asian Financial Crisis of 1997-1998.
The "Asian tigers" have picked up significantly since Krugman wrote the text and Krugman would agree that the future is brighter now than he would have imagined. But the threat is not gone, as Krugman notes in the introduction, "[d]epression economics is still with us, even if the risk of an actual depression has receded for now." Krugman determines some of the key issues in international economics today: the importance of government credibility, the destruction of economies created by the herding effect of capital flights, and the contradictory interest rate policies of many nations to maintain foreign capital and promote domestic growth. As Krugman notes, many times one must be sacrificed for the other and it has often been domestic growth, a "no-no" of economic common sense.
Krugman uses the infamous "babysitting co-op" he popularized to explain the effect of depression economics on households. This is only one of many parables which have become the trademark of Paul Krugman. Krugman's strength as a writer is his ability to break down complex ideas and make them accessible to readers in language that is far from lofty. He won't offer you a treatise, but he will show you a clearer way to break down the way the world works.
The tale of the Asian Financial Crisis and its repercussions for policy makers and economic thinkers, is definitely one worth telling. Krugman is a storyteller extraordinaire and provides a interesting and fun forum for synthesizing the economic sense and non-sense of currency crises and financial panics. And Krugman's policy recommendations concerning Japan have generated quite some controversy, making it worth reading just to understand the uproar he has caused among insiders and outsiders alike. Krugman never shies from controversy, but he always provides clever support for his ideas.
Paul Krugman, a professor at the Massachusetts Institute of Technology, holds a Ph.D in International Economics. He received the John Bates Clark Medal in 1991, given to the top economist under 40 by the American Economic Association every two years. Often described as a shoe-in for a future Nobel Prize, he is one of the chief architects of the new International Trade Theory. His other recent books for the general public include The Age of Diminished Expectations and Peddling Prosperity.
Subscribe to our newsletter! Enter your email address
here:
|
Get Stock Quote: Enter Symbol(s) |
Like our intro movie? Download
the Short Run's screen saver.