The Return of Depression Economics and the Crisis of 2008

Topics: Great Depression, Unemployment, Business cycle Pages: 4 (1288 words) Published: May 26, 2013
The author of The Return of Depression Economics and the Crisis of 2008, Paul Krugman, has several rewarding occupations; he is an economics and international affairs professor at Princeton University, Centenary Professor at the London School of Economics, and also a widely known columnist for The New York Times, which he received the title as “the most important political columnist in America” by The Washington Monthly. Krugmans’ book, The Return of Depression Economics and the Crisis of 2008, was highly praised and became a New York Times bestseller. This novel is broken into segments; the first of which discusses crisis’ that have occurred in the past that are similar to present day crisis’, for example, the Great Depression and the worldwide depression of 2008. The second segment analyzes the current crises, for example, the effects of the Latin American and Asian crisis in the 1900’s. Krugman also brings into light how countries thousands of miles apart have such a large impact on one another like a domino effect, for example, how when Russia experienced a financial crisis and economic reform, it devalued the Brazilian ‘real’, which then in turn effected the United States bond markets. The author uses his knowledge and view to analyze the United States’ and other county’s economic issues. He critiques the mistakes that were made and the warning signs that governments should be aware of and not overlook in order to prevent economic failure. An example was the over confidence in capitalism success due to increase of technology, globalization to third world countries, and the fall of socialism and socialist ideas that were prevalent in international ideologies. This confidence in capitalism blindsided Economists to an approaching depression. Krugman warns that even though an economy may be very strong, they are still subject to fall and should never take warning signs lightly, however these signs may not always be the same for every country. As brought up in...
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