As before, the second edition offers clear explanations of classical and Keynesian economic theory and how each has moved in and out of favor from the early 20th century to the present. It then provides detailed studies of major business-cycle downturns in the United States, from the Great Depression and postwar recessions to the "new" economy of the 1990s, the 2001 recession, and in an all-new chapter, the 2008 global financial crisis. The book also features an exhaustive update of statistical data, plus coverage of recent international crises in Argentina and Japan, and a new chapter on what we do and don't know about business cycles.
The ideas of John Maynard Keynes inspired the New Deal and helped rebuild world economies after World War II -and were later dismissed as "depression economics." Then came the great meltdown of 2008. Market forces that the world relied on suddenly failed to self-correct-and Keynes's doctrine of corrective action in an imperfect world became more relevant than ever.
Keynes was not a traditional economist: He was a polemicist, iconoclastic public intellectual, peer of the realm, and political operative, as well as an openly homosexual Bohemian who befriended Virginia Woolf and E. M. Forster. In Keynes, noted historian Peter Clarke provides a timely and masterful accounting of Keynes's life and work, bringing his genius and skepticism alive for an era fraught with economic difficulties that he surely would have relished solving.
The Great Recession is more than four years old—and counting. Yet, as Paul Krugman points out in this powerful volley, "Nations rich in resources, talent, and knowledge—all the ingredients for prosperity and a decent standard of living for all—remain in a state of intense pain."
How bad have things gotten? How did we get stuck in what now can only be called a depression? And above all, how do we free ourselves? Krugman pursues these questions with his characteristic lucidity and insight. He has a powerful message for anyone who has suffered over these past four years—a quick, strong recovery is just one step away, if our leaders can find the "intellectual clarity and political will" to end this depression now.
The global finance system can be regulated to prevent massive credit fraud, tame capitalism, confront the sovereign debt crisis, and move towards investing in the real economy and full employment. "Obamanomics", and American reinvention can lead to a sustained economic recovery but only together with major domestic, European, and global monetary reforms in cooperation with emerging nations.
For decades, the U.S. dollar has served as the world's reserve currency. But after the global market meltdown and the resulting massive stimulus spending meant to keep the Great Recession from becoming an even Greater Depression, confidence in America's ability to make good on its growing debt is at all-time lows. In Brave New World Economy: Global Finance Threatens Our Future, Wilhelm Hankel and Robert Isaak—two extremely controversial, yet highly respected experts on international economics and management—describe how "Obamanomics," the Euro crisis, and shift of economic growth from the West to emerging economies, if handled properly, can lead to true economic stability and job creation.Highlights America's 'Great Bluff' bail-out strategy to cope with the crisis and the reforms Obamanomics must make to bring about sustainable job recovery Describes the risks and rewards of borrowing from future generations—in the United States, Europe, and the developing world—to save the current generation Details how money became separated from government control and why the interbanking credit system threatens western nations with bankruptcy, undermining pensions, and the human right to work Points out why nation-states need to go back to helping themselves and not rely on the false promises of regional integration and globalization Shows how legalizing underground labor will create more jobs
How we arrived at this economic crossroads isn't as important as the decision as to which path to take. The Brave New World Economy points us in the right direction.