The Return of Depression Economics and the Crisis of 2008

By: Paul Krugman

Narrated by: Don Leslie

Length: 6 hrs and 33 mins

Publisher's summary

In 1999, in The Return of Depression Economics, Paul Krugman surveyed the economic crises that had swept across Asia and Latin America, and pointed out that those crises were a warning for all of us: like diseases that have become resistant to antibiotics, the economic maladies that caused the Great Depression were making a comeback.

In the years that followed, as Wall Street boomed and financial wheeler-dealers made vast profits, the international crises of the 1990s faded from memory. But now depression economics has come to America: when the great housing bubble of the mid-2000s burst, the US financial system proved as vulnerable as those of developing countries caught up in earlier crises and a replay of the 1930s seems all too possible.

In this updated edition of The Return of Depression Economics, Krugman shows how the failure of regulation to keep pace with an increasingly out-of-control financial system set the United States, and the world as a whole, up for the greatest financial crisis since the 1930s. He also lays out the steps that must be taken to contain the crisis, and turn around a world economy sliding into a deep recession. Brilliantly crafted in Krugman's trademark style - lucid, lively, and supremely informed - this new edition of The Return of Depression Economics will become an instant cornerstone of the debate over how to respond to the crisis.

©2008 Paul Krugman (P)2008 Rando House Audio

Critic reviews

“The most celebrated economist of his generation.” (The Economist)

“Krugman’s facility with both arcane details and vast unified explanations boils down complexity so much that the reader often wonders: Why didn’t I see it that way myself?” (Boston Globe)

Depressing necessity!

So much of this book, I did not want to hear. The more I wanted to turn it off, the more I kept listening. Because I spend much time in Bangkok, Thailand, chapter 3 on how crony capitalism in emerging markets really got my attention. The detailed mechanism of the '97 Asian financial crisis, which seems to be repeating itself in the US now, was cogently delineated, albeit with an attitude. Chapter 6 on hedge funds also opened my eyes to the rise and fall of money. Hear it but be prepared to turn it off only to turn it back on again!

Keynesian theory

I'm still not convinced by the basis of the Keynesian concept. There is some fundamental flaw to this concept in my opinion, but the Keynesian answer to the flaw is "in the end we are all dead". That may be true, but new people are born every day. It's definitely an interesting book, however it lacks the fundamental evidence to support this theory.

Worth reading

Krugman offers a comprehensive context for the crisis of 2008 and events still unfolding today. The professor deserves high marks for brevity and an elegance of presentation regarding the intricate connections of financial plumbing and investor psychology throughout history as manifest in bubbles, panics and crashes.

I withold the 5th star because his treatment of Alan Greenspan is cursory, dismissive and, I believe, unfair. The former fed chair turned universal scapegoat presided over a period where the effectiveness or normal tools of monetary policy changed in inexplicable ways. Krugman, of all people should recognize and acknowledge this.

Wonderful Read, Well-articulated

What made the experience of listening to The Return of Depression Economics and the Crisis of 2008 the most enjoyable?

The author does a good job of articulating his complex and deep issues into terms that the non-economist can understand. Further, he uses very well-considered real world examples to further demonstrate the mechanics that he is describing.

What did you like best about this story?

There isn't a part I didn't like.

Which character – as performed by Don Leslie – was your favorite?

n/a

Was this a book you wanted to listen to all in one sitting?

Yes

don't waste your money

I was very very disappointed with this book. I love Paul Krugman but hated this book. I could not believe that a Nobel Prize winner could write a book about the most important crisis facing the world today and not have any original ideas about how to get us out of this mess. Moreover, the book title is totally misleading - only a small portion of the book (the very last chapter) discusses the current crisis. And that chapter does little more than repeat what Krugman says in his NY Times column - the government should spend our way out of the crisis. The rest of the book is an economic history lesson of what happened in all the other economic crises since the Great Depression. And it is not even a very good history lesson. Not only was the book bad but the narrator was also bad. I could not stand to listen to his condescending tone. Save yourself the time and the credits. If you are interested in reading what Krugman thinks read his column. If you are interested in an economic history book (which this is) there are much better ones out there to read.