Sunday, January 27, 2013

Wiebe, The Search for Order, 1877-1920 (1967)

Robert H. Wiebe.
The Search for Order, 1877-1920.
New York: Hill and Wang, 1967.

Book information: Publisher; Google Books; Amazon.com.

The longer reviews on Amazon.com describe the book well. It is probably a more advanced synthesis of the period than people looking for a general survey would prefer. A good introductory text for this period is Brands, American Colossus: The Triumph of Capitalism, 1865-1900 (2010).

Some Wikipedia articles:

Sunday, January 20, 2013

Krugman, The Conscience of a Liberal (2007)

Paul Krugman.
The Conscience of a Liberal.
New York: W. W. Norton & Company, 2007.

Book information: Publisher; Google Books; Amazon.com; book webpage at author's website; Wikipedia.

You may know that this book's title is the same as the title of the author's blog, and you may thereby infer that this book is a compilation of the author's blog posts, but that would be an incorrect inference. The first (more than) two-thirds of the book is a quick survey of the interaction of economic forces and politics in the U.S. from the first Gilded Age to the present (a second Gilded Age), with the intention of explaining how we got to the current condition of U.S. political economy. In the final few chapters Krugman discusses policies that would improve the economic condition of the vast majority of the U.S. population, first and foremost universal health insurance. Other economists (Joseph E. Stiglitz; James K. Galbraith) have recently published books on the invidious effects of economic inequality; this is Krugman's book on that topic. He makes it clear that the economic inequality we observe in the U.S. today is the result of historical, political processes and policies that deserve wider understanding.

Video:

Paul Krugman, "The Conscience of a Liberal," pdxjustice Media Productions and Powell's City of Book, Portland, Oregon, 03 November 2007.
Watch it on YouTube.

"Book Discussion on The Conscience of a Liberal," Miami Book Fair International, C-SPAN, 11 November 2007.

"The Conscience of a Liberal Interview," Miami Book Fair International, C-SPAN, 11 November 2007.

"Saturday Book and Author Luncheon," BookExpo America, New York, C-SPAN, 02 June 2007.
Introduction of Paul Krugman begins at time 37:00; Krugman's talk ends at 53:25; Q&A begins at 1:10:00. (The other authors are: Muhammad Yunus, Valerie Plame Wilson, Russell Simmons. The moderator is Alan Alda.)

"Inequality Matters: The Growing Economic Divide in America," New School for Social Research, C-SPAN, 31 January 2006.
Moderator: Laura Flanders. Panelists: Paul Krugman; James Lardner; Meizhu Lui.
This event was associated with the book:
Inequality Matters: The Growing Economic Divide in America and Its Poisonous Consequences. James Lardner and David Smith, editors. New York: The New Press, 2006.
[Publisher; Google Books; Amazon.com.]
Note that most of Krugman's observations/words/themes at this 2006 event were incorporated in his 2007 book. (And his comments about comparisons of 1929 inequality levels with 2006 levels and the possible association of that inequality with the economic calamity of 1929 and afterwards certainly appear in his 2008 and 2012 books. However as Krugman notes, a direct mechanism linking inequality and financial crisis has not been established, but their close association is very suggestive.)
inequality.org; see also the Books on Inequality page at inequality.org.

Some Paul Krugman links:

Paul Krugman, Wikipedia.

Paul Krugman, columnist at The New York Times.

The Conscience of a Liberal, Paul Krugman, his blog at The New York Times.

Paul R. Krugman, Princeton University.

Paul Krugman, The Increasing Returns Revolution in Trade and Geography, Nobel Prize Lecture, 2008.

The Official Paul Krugman Web Page, MIT.

Paul Krugman, www.KrugmanOnline.com, a website created by his publisher.

Links to my posts on some of Krugman's other books:
Other items:

Claudia Goldin and Robert A. Margo, "The Great Compression: The U.S. Wage Structure at Mid-Century," Quarterly Journal of Economics, February 1992, vol. 107, pages 1-34.
Also available as: NBER Working Paper No. 3817, August 1991.

Thomas Piketty and Emmanuel Saez, "Income Inequality in the United States, 1913-1998," Quarterly Journal of Economics, 118(1), 2003, 1-39.

Thomas Piketty and Emmanuel Saez, "Income Inequality in the United States, 1913-2002," in Top Incomes over the Twentieth Century: A Contrast between European and English-Speaking Countries, A.B. Atkinson and T. Piketty editors, Oxford University Press, 2007.

Peter Diamond and Emmanuel Saez, "The Case for a Progressive Tax: From Basic Research to Policy Recommendations," Journal of Economic Perspectives, 25(4), Fall 2011, 165-190.

Emmanuel Saez, Department of Economics, University of California, Berkeley.
This page has links from which you can download his papers.

Emmanuel Saez, Wikipedia.

The Oxford Handbook of Economic Inequality. Wiemer Salverda, Brian Nolan and Timothy M. Smeeding, editors. Oxford University Press, 2011.
[Publisher; Amazon.com.]

Thursday, January 17, 2013

Krugman, End This Depression Now! (2012)

Paul Krugman.
End This Depression Now!
New York: W. W. Norton & Company, Inc., 2012.

Book information: Publisher; Google Books; Amazon.com; Amazon.co.uk; book webpage at author's website; Wikipedia.

Video:

Paul Krugman at Haverford College, Pennsylvania, 28 March 2011.
Watch it on YouTube.

Paul Krugman, "An Economy Under Siege," Yale University, 11 November 2011.
Watch it on YouTube.

"Panel Discussion on the Global Economy," Metropolitan Museum of Art, New York City, C-SPAN, 17 February 2012.
Moderator: Robert Silvers.
Panelists: Paul Krugman; Edmund Phelps; Jeffrey Sachs; George Soros.

Paul Krugman, "End This Depression Now!" London School of Economics, 29 May 2012.

Watch it on YouTube.

"End This Depression Now! A book talk with Paul Krugman," Economic Policy Institute, 02 May 2012.
Watch it on YouTube.
Event webpage at EPI.org.
EPI is the source of The State of Working America series.

Politics & Prose Bookstore, Washington DC, 01 May 2012.
Watch it on YouTube.

WGBH Forum Book Talk & Harvard Book Store, May 2012.
Watch it on YouTube.

"Paul Krugman talks with Chrystia Freeland," The Freeland File, Reuters TV, 07 May 2012.
Watch it on YouTube.

End This Depression Now!, Washington Journal, C-SPAN, 09 May 2012.

"Krugman on the global crisis," New Insights in Business and Finance, Brussels, May 2012.
Watch it on YouTube.

"End This Depression Now: Paul Krugman Urges Public Spending, Not Deficit Hysteria, to Save Economy," Democracy Now!, 17 May 2012.
Part One; Part Two; Part Three; Part Four.

Paul Krugman, BBC HARDtalk, 30 May or 01 June 2012.
Watch it on YouTube.

"U.S. Economic Recovery and the Middle Class," Netroots Nation, Providence, Rhode Island, C-SPAN, 08 June 2012.
Speakers: Heather C. McGhee; Paul Krugman; Richard L. Trumka; Ai-Jen Poo; Erica Payne.

Full Show: Paul Krugman on Why Jobs Come First, Moyers & Company, 11 January 2013.

Some Paul Krugman links:

Paul Krugman, Wikipedia.

Paul Krugman, www.KrugmanOnline.com, a website created by his publisher.

Paul Krugman, columnist at The New York Times.

The Conscience of a Liberal, Paul Krugman, his blog at The New York Times.

Paul R. Krugman, Princeton University.

Paul Krugman, "How Did Economists Get It So Wrong?," The New York Times Magazine, 02 September 2009.

Paul Krugman, "Earth to Ben Bernanke: Chairman Bernanke Should Listen to Professor Bernanke," The New York Times Magazine, 24 April 2012.

Paul Krugman, "How to End This Depression," The New York Review of Books, 24 May 2012.

Larissa MacFarquhar, "How Paul Krugman found politics," The New Yorker, 01 March 2010.

See also my post on Krugman's previous book The Return of Depression Economics and the Crisis of 2008 (2008).

Other items:

J. Bradford DeLong and Lawrence H. Summers, "Fiscal Policy in a Depressed Economy," Brookings Papers on Economic Activity, Spring 2012.
PDF at Brookings; Past Editions of Brookings Papers on Economic Activity; paper at Brad DeLong's blog.

Sunday, January 13, 2013

Krugman, The Return of Depression Economics and the Crisis of 2008 (2008)

Paul Krugman.
The Return of Depression Economics and the Crisis of 2008.
New York: W. W. Norton & Company, Inc., December 2008.

Book information: Publisher; Google Books; Amazon.com; book webpage at author's website; Wikipedia on the book.

What Krugman refers to by a "return of depression economics" is that since the 1980s financial crises have become relatively frequent, crises which initiate periods of economic recession and depression; this is in contrast to the period 1940s-1960s when few abrupt financial crises occurred.

(Update 15 Jan 2013: A theme that I overlooked while reading the book but which Krugman makes clear in Part Two of his LSE lecture series (slides 10-14) when comparing the recessions of 1981-82, 1991, and 2001 is how the period of depressed employment has gotten longer and longer with each successive recession (which trend has continued with the 2007-2008 recession, though it was too soon to observe this when Krugman gave his talk in 2009), and how that how that phenomena of lengthening unemployment is associated with interest rates.)

During the 1970s financial crises were viewed as external shocks rather than as endemic or endogenous to the financial system (1973 oil price shock, 1979 oil price shock) despite the presence of gradual adverse financial phenomena (inflation, prolonged stock market decline).

During the 1980s financial crises could still be viewed as the result of aberant phenomena: Mexico (1982); La Década Perdida; Latin American debt crisis; U.S. Savings and Loan crisis.

This book is revised from a book originally published in 1999 after the 1997 Asian financial crisis, the most notable event during a decade that also saw Japan's Lost Decade following the collapse of its late 1980s asset price bubble, and financial crisis in Sweden (1992), Mexico (1994), Russia (1998), and the collapse of Long-Term Capital Management (1998). The 1990s period of financial crises ended with financial crisis in Argentina (1999-2002) and the collapse of the Dot-com bubble.

The 2000s saw the collapse of a U.S. housing bubble (notable real estate bubbles also occurred in Spain, U.K., Ireland, and elsewhere) which precipitated the financial crisis of 2007-2008 which in turn has had prolonged and unexpected world-wide effects. Krugman's book provides a survey of this economic history with a few chapters at the end written in late 2008 on the most recent crisis. It is hard to generalize on the causes of these crises since they each have their own particular contexts and characteristics. However, in addition to the usual speculative excesses of careless lending and excessive debt associated with asset price bubbles, we can observe that many of the recent crises were associated with some kind of derangement of regulation and supervision at the national or international level: over-regulation (fixed exchange rates associated with currency crises); de-regulation (S&L crisis); and the lightly- or never-regulated (the sub-prime mortgage industry; the shadow banking system).

Video:

Paul Krugman, "The Return of Depression Economics Part 1: The sum of all fears," London School of Economics, 08 June 2009.

Slides are available at the event webpage for this talk here.

Paul Krugman, "The Return of Depression Economics Part 2: The eschatology of lost decades," London School of Economics, 09 June 2009.

Slides are available at the event webpage for this talk here.

Paul Krugman, "The Return of Depression Economics Part 3: The night they reread Minsky," London School of Economics, 10 June 2009.

Slides are available at the event webpage for this talk here.

Paul Krugman, "The Return of Depression Economics?" Princeton University, 18 April 2009.
Watch it on YouTube.

Paul Krugman, "The Return of Depression Economics," Princeton University, 21 October 2009.
Watch it on YouTube.

"New Dynamics of Globalization," National Association for Business Economics, Washington DC, C-SPAN, 06 October 2008.
Speakers: Edmund Phelps; Paul Krugman.

Paul Krugman, "Economic Crisis," Luncheon Speech, National Press Club, C-SPAN, 19 December 2008.

"U.S. Economy," Washington Journal, C-SPAN, 15 February 2009.
Paul Krugman interview and view call-in.

"Economic Crisis and How to Deal with It," PEN World Voices Festival, C-SPAN, 30 April 2009.
Moderator: Jeff Madrick. Panelists: Bill Bradley; Niall Ferguson; Paul Krugman; Nouriel Roubini; George Soros; Robin Wells.

Paul Krugman information:

Paul Krugman, Wikipedia.

Paul Krugman, www.KrugmanOnline.com, a website created by his publisher.

Paul Krugman, The New York Times.

The Conscience of a Liberal, Paul Krugman, his blog at The New York Times.

Paul R. Krugman, Princeton University.

Paul Krugman, "Incidents from my career" (an intellectual autobiography), no date.

Friday, January 11, 2013

Koo, The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession (2009)

Richard C. Koo.
The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession, Revised and Updated edition.
Singapore: John Wiley & Sons Asia Pte. Ltd., 2009.

Book information: Publisher; Google Books; Google Books with preview; Amazon.com; Amazon.co.uk.

Richard Koo may have found the "Holy Grail" (i.e., quest object) of macroeconomics: he may have solved the problem of what caused the Great Depression in the United States during the 1930s: it was a Balance sheet recession.

In addition to his explication of the nature of balance sheet recessions, Koo's book is useful in providing an expanded framework for understanding the macroeconomy. Koo's expanded view notes two phases of economic cycles: the traditonally understood period when firms maximize profits (which Koo calls the yang phase) during which monetary policy (for example, central bank raising and lowering of interest rates) is effective; and the less well understood period when firms and households minimize debt in order to repair balance sheets (which Koo calls the yin phase). When firms and households are paying off debt they are not interested in borrowing funds to finance growth regardless of how low interest rates may fall (hence monetary policy is not effective in stimulating economic growth). A period when many/most firm minimize debt following an asset price bubble collapse (e.g., USA 1929, Japan 1990, USA 2007-2008) is when balance sheet recessions can occur (if effective policy action is not taken). The balance sheet recession is the appropriate time for aggressive fiscal policy and is when it is most effective (Koo is not advocating the the use of fiscal policy as was done in the U.S. during the post-war 1940s-1970s period to "fine-tune" the economy and smooth out business cycles of the yang phase, which is now recognized as contributing to the inflation of the 1970s, along with many other factors).

Some Richard Koo links:

Richard Koo, Wikipedia.

Richard Koo, Institute for New Economic Thinking (INET).
(This page has links to many talks by Koo.)

Richard Koo, "The world in balance sheet recession: causes, cure, and politics," Real-World Economics Review, Issue No. 58, 12 December 2011.
This paper is an excellent summary of the data and ideas Koo presents in his book (which is often repetitive).

Richard Koo, "No Time to be Complacent: What Post-2008 U.S., Europe and China Can Learn from Japan 1990-2005," Lowy Institute for International Policy, Sydney, Australia, February 2011.
Part 1; Part 2.

The longer talk by Koo at the Lowy Institute (above) is a very good presentation of his data and ideas, in contrast to the shorter (and thus, I think, less satisfying, though still good) talks at INET meetings (below).

Richard Koo speaking at INET Bretton Woods, 09 April 2011:

INET Bretton Woods 2011 Program webpage; Koo spoke during the session: Getting Back on Track: Macroeconomic Management after a Financial Crisis (this page has links for the videos/slides/papers that preceeded and followed Koo along with the Discussion period); Download Koo's slides [PDF].

Richard Koo speaking at INET Berlin, 14 April 2012:

INET Berlin 2012 Program webpage; Download Koo's slides [PPT]; Download Koo's paper [PDF].

Paul Krugman endorsed Richard Koo's analysis of recent U.S. economic stagnation as due in some degree to a balance sheet recession in this talk: "The Return of Depression Economics, Part 2: The eschatology of lost decades," London School of Economics, 09 June 2009.

Other links:

Irving Fisher, "Debt-Deflation Theory of Great Depressions," Econometrica, 1933.
[Link is for a webpage at the St. Louis Fed from which you can download a copy of this paper.]
Koo explains why Fisher's analysis in this Debt-Deflation paper is inadequate on pages 180-184 of his book.

Irving Fisher, Wikipedia.

Hyman Minsky, Wikipedia.

Steve Keen is one of the more prominent currently active economists to call attention to mainstream academic economists' avoidance of the topic of (non-government) debt and debt's macroeconomic effects.

Professor Stephen Keen, Kingston University, London.

Steve Keen's Debtwatch, his blog.

Steve Keen, Wikipedia.

Steve Keen. Debunking Economics, second edition. London: Zed Books, 2011.
[Publisher; Google Books; Amazon.com.]

Steve Keen: Why Economics Is Bunk, BBC Radio 4, 10 June 2012.

Tracking the Global Economy, Federal Reserve Bank of St. Louis.
This webpage has graphs of major macroeconomic variables since 2009 for the G7 countries plus Australia (illustrating how those economies have or have not recovered since the 2007-2008 financial crisis).

Some Wikipedia articles:
Paradox of thrift
Fallacy of composition
Great Depression in the United States during the 1930s
Causes of the Great Depression
Recession
Balance sheet recession
Depression (economics)
Japan's Lost Decade
Dot-com bubble
Early 2000s recession
United States housing bubble
Financial crisis of 2007–2008
Causes of the 2007–2012 global financial crisis
Great Recession
Causes of the Great Recession
Comparisons between the Great Recession and the Great Depression
Liquidity trap

Wednesday, January 09, 2013

"Is Mercantilism Doomed to Fail? China, Germany, and Japan and the Exhaustion of Debtor Countries," INET Berlin, 13 April 2012

"Is Mercantilism Doomed to Fail? China, Germany, and Japan and the Exhaustion of Debtor Countries" was a session at the Institute for New Economic Thinking (INET) meeting in Berlin, 12-14 April 2012. For further details on the meeting, the speakers, and other sessions on other topics see the Program.

Part One: Paul Davidson
Watch it on YouTube.
Paul Davidson, Wikipedia. Download Davidson's paper [PDF].

Part Two: Heiner Flassbeck
Watch it on YouTube.
Heiner Flassbeck, INET.

Part Three: Norbert Walter
Watch it on YouTube.
Norbert Walter, INET. Download Walter's paper [PDF]. Download Walter's slides [PDF].

Part Four: Joseph Stiglitz
Watch it on YouTube.
Joseph Stiglitz, Wikipedia. Download Stiglitz's slides [PDF].

Part Five: Discussion and Q&A
Watch it on YouTube.

Some of the speakers in the above talks refer to a talk earlier that day by Paul Martin (Finance Minister 1993-2002 and Prime Minister 2003-2006 of Canada):

Keynote Address: Reflections on the Politics of Deficit Reduction
Watch it on YouTube.
Paul Martin, Wikipedia.

Monday, January 07, 2013

Wolf & Severino, "The State of the World Economy in 2012," 23 Jan 2012

Martin Wolf & Jean-Michel Severino, "The State of the World Economy in 2012," London School of Economics, 23 January 2012.

Download the speakers' slides from the event webpage at LSE here.

The 2011 event mentioned by David Held in his introductory remarks is: "Global Imbalances and Social Challenges," London School of Economics, 22 June 2011.

Martin Wolf, Wikipedia.

Jean-Michel Severino, Wikipedia.

Saturday, January 05, 2013

Byrne, editor, The Occupy Handbook (2012)

The Occupy Handbook.
Janet Byrne, editor.
New York: Back Bay Books / Little, Brown and Company / Hachette Book Group, 2012.

Book information: Publisher; Google Books 1; Google Books 2; Amazon.com.

The Occupy Handbook is a collection of short essays on economics and policy. Most of the authors have written books on these topics so The Occupy Handbook can serve as a guide to further inquiry in this area. Perhaps inevitable in a large collection like this, one will find some variation in quality. The book contains two or three more contributions from journalists (instead of economists or other scholars) than I would prefer (but this book is intended for non-specialist general readers) and the "Solutions" section contains a few proposals I think could be described charitably as weak and unrealistic. Those lower quality contributions make up perhaps 10% to 20% of the book, so on balance I think the majority of the contributions makes this book worth reading. The speakers in the videos below provide a preview of the higher quality essays.

Videos from book launch events, April 2012:

The Occupy Handbook: Speakers
Watch it on YouTube.
The speakers are: Carmen M. Reinhart; Robin Wells; James A. Robinson; John Cassidy.

The Occupy Handbook: Q and A
Watch it on YouTube.

Economics and Occupy Wall Street: Solutions from The Occupy Handbook
Watch it on YouTube.
The panel includes: John Cassidy; Robert Solow; Martin Wolf; Bethany McLean; David Cay Johnston; Jeff Madrick; Raghuram Rajan; Jeffrey Sachs.