In 1999, in The Return of Depression Economics, Paul Krugman surveyed the economic crises that had swept across Asia and Latin America, and pointed out 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.

In this new, greatly updated edition of The Return of Depression Economics, 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 The Return of Depression Economics will become an instant cornerstone of the debate over how to respond to the crisis.

Contents

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Introduction  About This Book 1 "The Central Problem Has Been Solved"  Capitalism Triumphant  The Taming of the Business Cycle  Technology as Savior  The Fruits of Globalization  Skeptics and Critics 2 Warning Ignored: Latin America's Crises  Mexico: Up from the 1980s  Argentina's Break with the Past  Mexico's Bad Year  The Tequila Crisis  The Great Rescue  Learning the Wrong Lessons 3 Japan's Trap  Japan as Number One  Bubble, Toil and Trouble  A Stealthy Depression  Japan's Trap  Japan Adrift  Japan's Recovery 4 Asia's Crash  The Boom  July 2, 1997  Meltdown  Contagion  Why Asia? Why 1997?  Epilogue: Argentina, 2002  The Deeper Question 5 Policy Perversity  How the International Monetary System Didn't Evolve  The Speculative Threat  The Confidence Game  Did the IMF Make the Situation Worse? 6 Masters Of The Universe  The Nature of the Beast  The Legend of George Soros  The Madness of Prime Minister Mahathir  The Attack on Hong Kong  The Potemkin Economy  The Panic of 1998 7 Greenspan's Bubbles  The Age of Greenspan  America's Designated Driver  Greenspan's Bubbles  When Bubbles Burst 8 Banking In The Shadows  The History of Banking, Simplified  The Shadow Banking System  Malign Neglect 9 The Sum Of All Fears  The Housing Bust and Its Fallout  The Non-Bank Banking Crisis  The Fed Loses Traction  The Mother of All Currency Crises  A Global Slump 10 The Return Of Depression Economics  What Is Depression Economics?  What to Do: Dealing with the Emergency  Financial Reform  The Power of Ideas

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Tags: Economics, History, Globalization, WorldPolitics, Business

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