Summary of The Return of Depression Economics

W.W. Norton,
First Edition: 1999 more...

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The Return of Depression Economics book summary
If governments can make calm decisions and if investors don’t panic, economies can recover from all kinds of mayhem.

Rating

9 Overall

7 Applicability

9 Innovation

10 Style

Recommendation

Economic scholar Paul R. Krugman investigates the forces that drive economic growth and recession, and makes sense of several complicated issues. His ability to maintain the essence of a topic while simplifying complex economics with examples and analogies is a hallmark of his work. Despite the gloomy title, the book is not depressing because, Krugman concludes, another Great Depression is not looming in our future. Capitalism has, overall, provided the foundation for prosperity in advanced and developing economies alike. Indeed, the information age has introduced entrepreneurs who have generated wealth while becoming romantic heroes for succeeding in spite of giant corporations. However, Krugman stays alert for dark forces, warning us against panic attacks in the international financial markets, where multiplying negative feedback can overwhelm the effects of monetary policy. getAbstract.com recommends Krugman’s in-depth analysis to anyone with an interest in world economics and financial markets.

In this summary, you will learn

  • The roles that consumer demand and productivity growth play in sustainable prosperity
  • The recession-fighting ability of specific economic policy tools
  • The power of investor perceptions, panic and negative feedback loops to bring down otherwise well-behaved economies
 

Summary

The Need to Want More
The world economy will not enter a depression reminiscent of the 1930’s in the near future. However, a large part of the world must become sensitive to the forces of depression economics. For the first time since WWII, failures on the demand side of the economy including...
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About the Author

Paul R. Krugman is a professor of economics at the Massachusetts Institute of Technology (MIT) and produced this book in a time of economic crisis, specifically, in Brazil in January 1999. He is a prolific economic scholar. Fortune magazine claims that he "writes better than any economist since John Maynard Keynes," and the Economist describes him as "probably the most creative economist of his generation."


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