The only surprise about the economic crisis of was that it came as a surprise to so many. For a few observers, it was a textbook case that was not only predictable but also predicted. A deregulated market awash in liquidity and low interest rates, a global real estate bubble, and skyrocketing subprime lending were a toxic combination. Add in the U.

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This book along with "The Price of Civilization" by Jeffrey Sachs put our current economic situation in an excellent historical perspective. It lays out what has gone wrong with unregulated or lightly Not as readable as his earlier books. My eyes tended to glaze over at the technical stuff Joseph E. The Great Recession, as it has come to be called, has impacted more people worldwide than any crisis since the Great Depression. Flawed government policy and unscrupulous personal and corporate behavior in the United States created the current financial meltdown, which was exported across the globe with devastating consequences.

Few are more qualified to comment during this turbulent time than Joseph E. America as a nation faces huge challenges—in health care, energy, the environment, education, and manufacturing—and Stiglitz penetratingly addresses each in light of the newly emerging global economic order. An ongoing war of ideas over the most effective type of capitalist system, as well as a rebalancing of global economic power, is shaping that order. He was chairman of the Council of Economic Advisers under President Clinton, chief economist of the World Bank, named by Time as one of the most influential individuals in the world, and now teaches at Columbia University and is chief economist of the Roosevelt Institute.


Freefall: Free Markets and the Sinking of the Global Economy by Joseph Stiglitz

Stiglitz , first published in by W. While focusing on the roots of the financial crisis of and the subsequent global economic slowdown , which he claims to find mainly in fiscal policy as conducted during the Bush presidency and decisions made by the Federal Reserve , Stiglitz also talks about the failure to cope with the recession during the months succeeding the Wall Street Crash of Finally, he sketches various schemes as to the possible future of the American economy , vigorously proposing a profound policy shift. In compliance with Stiglitz's general attitude towards economic policy , Freefall contains "proposals to tame the banking sector and to foster a more humanistic style of capitalism in the United States and abroad. The title of the book points at the sharp decline in stock prices following the bankruptcy of the investment bank Lehman Brothers in September, Meanwhile, its subtitle reveals Stiglitz's conviction that free markets are at the bottom of the crisis, as he makes deregulation responsible for the rise of the shadow banking system , over- leveraged banks and subprime mortgages. Accordingly, in Freefall Stiglitz criticizes advocates of deregulation and free markets, most notoriously Larry Summers [3] and Ben Bernanke.


What Happened to Regulatory Reform?

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Book Review: Freefall by Joseph Stiglitz

Joseph Stiglitz is one of the most important, yet somehow under-the-radar economist today. In Freefall: America, Free Markets, and the Sinking of the World Economy, Stiglitz provides readers with a narrative of the events leading up to and during the financial crisis and Great Recession. He does a masterful job of diagnosing the problems, critiquing policy decisions and creating a comprehensive forward-looking vision of what an economy SHOULD look like. This last aspect is where Stiglitz truly excels.

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