How Does Krugman Explain The Crisis Of 2008 Chapter Summaries
Summary: Paul Krugman, Nobel Prize in Economics in 2008, made a remix of a previous book on the Asian crisis to explain the crisis of 2008. Examines with an entertaining crises that followed the Great Depression of 1929 and focuses on Asian and Latin American 90s and 2000, he drew attention for its stagnation. He says that when all augured an era of unlimited growth after learning the lessons of the Great Depression and the elimination of the cyclical crises in Asia happened just the opposite. For Krugman, in 150 years of capitalism, if one thing is certain, are the crises that are repeated continuously.
Krugman gives an example of economic staking so that everyone understands: a group of Washington lawmakers agree to make their children kangaroos, each has a bonus for each night to babysit another couple. All goes well until falling demand and people stop out coupons to reserve if needed for an emergency, so demand more restricted. That's the same thing happens to the current economy, it says Krugman.
In Chapter 2, Krugman analyzes the Latin American crises of the 70s and 80s, with high debt and hyperinflation. He says the dictatorial Pinochet regime, …show more content…
They gambled short and long, with purchases and repurchases taking advantage of currency devaluations. It did not happen the same in Asia, where Malaysia's complaints Soros earned by his speculations. Then followed Russia. Krugman's conclusion is that speculators may not be the cause of currency crises but arriving before or precipitate. Only Hong Kong, which detected the financial maneuvers, managed to stop him by injecting a lot of money in its currency and making them lose money to speculators, who withdrew. Being five or six those who are involved in this business, they were the "market" so they could not fool anyone or sell each
Krugman gives an example of economic staking so that everyone understands: a group of Washington lawmakers agree to make their children kangaroos, each has a bonus for each night to babysit another couple. All goes well until falling demand and people stop out coupons to reserve if needed for an emergency, so demand more restricted. That's the same thing happens to the current economy, it says Krugman.
In Chapter 2, Krugman analyzes the Latin American crises of the 70s and 80s, with high debt and hyperinflation. He says the dictatorial Pinochet regime, …show more content…
They gambled short and long, with purchases and repurchases taking advantage of currency devaluations. It did not happen the same in Asia, where Malaysia's complaints Soros earned by his speculations. Then followed Russia. Krugman's conclusion is that speculators may not be the cause of currency crises but arriving before or precipitate. Only Hong Kong, which detected the financial maneuvers, managed to stop him by injecting a lot of money in its currency and making them lose money to speculators, who withdrew. Being five or six those who are involved in this business, they were the "market" so they could not fool anyone or sell each