Wonk Books .. Paul Krugman Edition

While visiting New York, I had a chance to pick up and read an inexpensive copy of Paul Krugman's new book, The Return of Depression Economics and The Crisis of 2008. (In actuality, this is a revised and expanded edition of a book that first appeared in 1999.)

The book's central point is that certain kinds of economic problems that everyone though had been solved after the Great Depression actually haven't been solved. Instead, they have been reappearing in different forms in different parts of the world since 1990 and now are impacting the United States. Krugman likens the situation to the reappearance of a disease that had been considered extinct.

Like much of Krugman's writing, the book excels at making complicated economic concepts clear and engaging. It also provides concise analyses of the major economic crises of the past 20 years including Japan's decade of stagnation, Mexico's economic implosion, the Asian meltdown, Argentina's collapse, Russia's financial crisis and, now, the American financial meltdown.

While Krugman's analyses and descriptions of foreign financial crises are illuminating, his discussion of the American situation feels unsatisfying. It contains few insights that have not already appeared in his columns.

That said, the discussion of foreign affairs is worthwhile, especially for individuals who are not familiar with the intricacies, say of coordinated hedge fund attempts to bring down Hong Kong's currency. And, his insistence on connecting recent American developments to a larger international pattern provides a useful way of thinking about the global nature of the current crisis.