Anyone with15 minutes to spare and a serious interest in the world economic crisis should read this article by Paul Krugman and Robin Wells in The New York Review, 13th May, 2010. Here are a few quotations as tasters:
...too much debt is always dangerous.
...the Depression looks much more like the product of excessive private sector debt than like the government failure of monetarist legend
...the aftermath of financial crises tends to be nasty, brutish and long.
...the long term cost of financial crises is less when countries respond with strong stimulus policies, which means that failure to do so risks damage not just this year but for years to come. (My emphasis)
...there's obviously a strong case for a return to much stricter regulation...(but)..the ideology used to justify the dismantling of regulation has proved remarkably resilient...the financial industry's political power has not gone away.
I hope you're tempted.
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Yes,I'mtempted. I'll read the article.
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