Book review: End the Depression Now! by Paul Krugman

Book review ‘End This Depression Now.’

Gloria Ma

‘End This Depression Now’ by Paul Krugman focuses on analysing the causes and consequences of 2008 Economic Crisis, in order to outline numbers of methods to avoid future depressions.

Throughout the book, Krugman is very much like an existentialist who urges the responsible agents to act spontaneously towards changes in policies making and economic forecast. As he quotes from Keynes: “The long run is a misleading guide to current affairs. In the long we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the sea is flat again.” Hence, Krugman argues that all the economic crisis are avoidable as the economists can proactively make adaptations over time periods. Taking the example of Brexit, “the boom, not the slump, is the time for austerity”, a cut in interest rate and cooperation tax are authentic policies to impose in the U.K. economy – they not only boost the consumer and business confidence but also directly increase consumption and investment to maintain a sound economics growth rate.

The most captivating, or precisely the most admirable part of this book is that Krugman has a visionary prediction of the world politics now: a global lean towards nationalism (extremism) – such as Brexit, Trump’s presidency and the coming up French general election Round 2 – this phenomenon can be simply interpreted by economic factors. It is obvious that Krugman stands aside with the Keynesians, however, this might inevitably set the width of the book rather narrow.
Although Krugman has listed lots of adequate arguments, it is always interesting to hear other monetarists’ solutions upon economic crises.

Overall, I have learnt a great deal from this book, not merely the economists’ theories, and also the responsibilities that rule-setters have to act on. No depressions can indicate the end of the world, there are always solutions and ways to limit the harms.

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