The Return of Depression Economics and the Crisis of 2008

摘要

The prosperity of 1990s convinced many of us that the business cycle had been tamed; never again would we face a major depression. The current recession, however, has brought back talk of depressions. The credit crunch of 2007-2008 that set off severe recession naturally raises several questions. What went wrong? Who is to blame for this crisis? Would the crisis turn into a 1930s depression? The Return of Depression Economics and the Crisis of 2008 provides answers to these questions. Without relying on fuzzy mathematics, it demonstrates that the fundamental sources of the current recession are similar to the economic crises the world has recently experienced.