Saturday, 30 July 2016
The Return of Depression Economics, by Paul Krugman
Nobel-award winning economist Paul Krugman provides a fairly readable history of financial crises in the Twentieth century, leading to an explanation of the banking crisis of 2008. I particularly liked the way he explained the concept of a recession by an analogy with a baby-sitting circle. This is a very informative book.
As a response to the 2008 recession, Krugman rejects supply-side economics (as advocated by Milton Friedman and implemented by Reagan and Thatcher) in favour of Keynesian demand-side economic policies. I would have liked him to have spent more time on that subject and offered a little more explanation as to the inadequacies of supply-side economics.