“ The world economy is not in depression; it probably won’t fall into depression, despite the magnitude of the current crisis (although I wish I was completely sure about that). But while depression itself has not returned, depression economics - the kinds of problems that characterised much of the world economy in the 30s - has staged a stunning comeback. Fifteen years ago, hardly anybody thought that modern nations would be forced to endure bone-crushing recessions for fear of currency speculators, and that major advanced nations would find themselves persistently unable to generate enough spending to keep their workers and factories employed.
— Paul Krugman explains the current financial crisis and proposes a Keynesian solution to get credit flowing and prop up spending. A fascinating and essential read.
