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Past and future tense
A new book from a prescient economist
WHAT is the Japanese word for Schadenfreude? For much of the late 1990s and early 2000s, Western economists and politicians were happy to lecture the Japanese government about the mistakes it made in the aftermath of its asset bubble. But six years after the collapse of Lehman Brothers, the investment bank whose demise triggered the financial crisis, many Western economies are still struggling to generate decent growth. Their central banks are being forced to keep interest rates close to zero. Yields on government bonds in Europe, as in Japan, have sunk to record lows. Some economists are talking of a new era of “secular stagnation”.
A new book* from Richard Koo of the Nomura Research Institute argues that the West has made glaring errors too. “We are experiencing not only an economic crisis but also a crisis in economics,” he …
via Economic Crisis http://ift.tt/1Ac4NAF