The Return of Depression Economics

<p>Paul Krugman winner of the 2008 Nobel Prize in economics shows how today's crisis parallels the events that caused the Great Depression - and explains what it will take to avoid catastrophe.<br><br>In 1999 in <i>The Return of Depression Economics</i> Paul Krugman surveyed the economic crises that had swept across Asia and Latin America and warned that those crises were a warning for all of us: like diseases that have become resistant to antibiotics the economic maladies that caused the Great Depression were making a comeback.In the years that followed as Wall Street boomed and financial wheeler-dealers made vast profits the international crises of the 1990s faded from memory. But now depression economics has come to America: when the great housing bubble of the mid-2000s burst the U.S. financial system proved as vulnerable as those of developing countries caught up in earlier crises - and a replay of the 1930s seems all too possible. <br><br>In this new greatly updated edition of <i>The Return of Depression Economics</i> Krugman shows how the failure of regulation to keep pace with an increasingly out-of-control financial system set the United States and the world as a whole up for the greatest financial crisis since the 1930s. He also lays out the steps that must be taken to contain the crisis and turn around a world economy sliding into a deep recession. Brilliantly crafted in Krugman's trademark style-lucid lively and supremely informed - this new edition of <i>The Return of Depression Economics</i> will become an instant cornerstone of the debate over how to respond to the crisis.</p>