Return of Depression Economics – Paul Krugman

In The Return of Depression Economics an updated edition of his landmark book, Paul Krugman, winner of the 2008 Nobel Prize in economics, shows how today’s economic crisis parallels the events that caused the Great Depression – and explains what it will take to avoid catastrophe.

Paul Krugman’s dazzling and prescient polemic The Return of Depression Economics surveyed the economic crises that had swept across Asia, Russia and Latin America in the 1990s, and showed that those crises were a warning for all of us. Now depression economics has returned: when the great housing bubble of the mid-2000s burst, the Western financial system proved as vulnerable as those of developing countries caught up in earlier crises – and now a replay of the 1930s seems all too possible.

Krugman showed how it happened and lays out the steps that must be taken to turn around a world economy sliding into a deep recession. Brilliantly crafted in his trademark style – lucid, lively, and supremely informed – this will become an instant cornerstone of the debate over how to respond to the state we are in.

Links and Further Reading

• Paul Krugmans column in the New York Times
• Paul Krugman discusses the Financial Crisis

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