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> <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>