Summary of When the Money Runs Out

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

When the Money Runs Out book summary
Start getting smarter:
or see our plans

Rating

8 Overall

8 Importance

7 Innovation

9 Style


Recommendation

In this “mixture of economics, politics and history,” economist Stephen D. King inches toward the conservative side with his attitudes and analysis of government debt and stimulus. King shares a concern with other observers that the financial crisis, quantitative easing and contemporary economic circumstances are leading to “schisms” in society. He answers the call for a 1930s-like stimulus by noting that governments have already shot more stimulus bolts than President Franklin Roosevelt, who faced a different situation, ever did. King encompasses a wide range of references – economic history, Japan and Argentina, economist Ludwig von Mises’s “illusory prosperity” concept, the late-1990s Asian crisis, and the contrasting fortunes of different generations – in order to ask a telling question: What are the consequences when foreigners come to feel less confident in Western finances and want more hard assets in debt repayment? King’s most exciting argument is in favor of nominal GDP targeting, perhaps the next big policy idea in coming years. getAbstract recommends his rich exegesis as an intelligent, concerned contribution to the financial debate.

In this summary, you will learn

  • Why quantitative easing inflated certain assets but failed to stimulate Main Street growth,
  • How various fiscal policies have succeeded or failed, and
  • How the financial crisis has produced or exposed serious “schisms” in Western countries.
 

About the Author

Stephen D. King, HSBC group chief economist, writes for The Financial Times and The Times.

 

Summary

The West’s “Illusory Prosperity”
Economists and society in general suffer a collective delusion about the recurring bubbles in Western economies and in particular about the pre-2008 American property boom. This attitude exemplifies the hubris that “too often comes before nemesis.” Even...

More on this topic

By the same author

Grave New World
Grave New World
8

Customers who read this summary also read

How to Speak Money
How to Speak Money
8
Cracking the Emerging Markets Enigma
Cracking the Emerging Markets Enigma
7
This Time Is Different
This Time Is Different
8
The Eurozone’s Hidden Strengths
The Eurozone’s Hidden Strengths
8
Audacity
Audacity
8
The Rise and Fall of Nations
The Rise and Fall of Nations
7

Related Channels

Comment on this summary