27 Jun THE RETURN OF DEPRESSION ECONOMICS AND THE CRISIS OF 2008
vIn The Return of Depression Economics and the Crisis of 2008, Paul Krugman warns us that Americas gloomy future might parallel those of other countries. Like diseases that are making a stronger, more resistant comeback, the causes of the Great Depression are looming ahead and much more probable now after the great housing bubble in 2002. In his new and revised book, he emphasizes even more on the busts of Japan and the crises in Latin America (i.e: Argentina), and explains how and why several specific events–recessions, inflationary spiraling, currency devaluations–happened in many countries. Although he still does not give us any solid options or specific steps to take to save America other than those proposed by other economists, he thoroughly examines international policies and coherently explains to us average citizens how the world is globalizing–that the world is becoming flatter and countries are now even more dependent on each other.
The main ideas in Krugmans book revolve around the “Keynesian Compact” or the “neoclassical consensus”. Krugman suggests five general so…
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